At the New Delhi Municipal Corporation (NDMC) under which these markets come, the property tax is upto 25% of the rent collected while in other parts of Delhi it’s just 2-3%.
The association has suggested the NDMC to adopt a rational and equitable base rate, which is same as under MCD, as there should be no difference of property tax being paid by shops in the elite markets like Karol Bagh, South Extension, Malls located at Saket or Vasant Kunj to shops in Connaught Place and Khan Market.
“All we are asking for is one city one tax, which will simplify everything. For years, we have been fighting for property tax at par with the MCD area. Now that a gazette notification has come, NDMC is delaying the implementation process, which is impacting the traders in posh localities of New Delhi, said Vikram Badhwar, General Secretary, New Delhi Traders Association (NDTA).
Khan Market, India’s priciest retail address, saw the least rental growth at 3% in 2025 with rents at USD 223 per square foot per year. Globally, Khan Market held onto its number 24 slot and is still India’s costliest high street.
Gurgaon’s Galleria Market surged with a 25% jump — the fastest growth across APAC followed by Connaught Place (up 14%) and Mumbai’s Kemps Corner (10%).
“As a landlord, when we rent out property to any brand, we have to pay 25% on the rent as property tax and then income tax as well. Almost, 50% of the income goes in tax and that is why the rents are skyrocketing. There is a notification to calculate the property tax using unit area method but that is not being implemented leasing to harassment,” said Aditya Jain, who owns multiple shops in Connaught Place.NDTA had also written to the NDMC recently highlighting problems arising due to high taxation.
A NDMC spokesperson said that process to implement the new method is on.
“We welcome the long-awaited legislative reforms in the shape of property tax under UAM in the NDMC Areas. It is important to emphasize that in the process of finalizing the guidelines specifying the mechanism for computing property tax, the spirit of “One City, One Tax” should be consciously preserved. As such we request you to prevail upon the Municipal Valuation Committee (MVC) to adopt a rational and equitable form and manner so that the taxation across the city is comparable and not have any disparity,” the association has said in the letter.
The association said that many have received the notices claiming dues running in crore but most of them have approached the court for relief.
“For the Municipal Valuation Committee to function in a transparent and balanced manner, it is essential that it includes a representation from elected representatives as well as stakeholders. We request that a member from recognized associations such as NDTA be included, so that practical issues and ground realities are duly considered,” NDTA said.
The association has also said that field-level tax collection authorities are issuing erroneous and often arbitrary notices relating to periods immediately preceding the introduction of the new system.
“This is resulting in avoidable harassment and uncertainty. We request that all pending dues and disputes pertaining to the pre-Jan Vishwas Bill period be kept in abeyance for the time being; and a clear, written policy be issued providing stakeholders an opportunity to settle such matters under the new framework once it is fully implemented,” it said.