A Strong First Half for Retail Leasing
Retail leasing in India has had a remarkable run through the first half of 2025. Brands across categories have expanded footprints, while developers reported healthy absorption of new spaces. The post-pandemic recovery has now matured into a phase of experience-led growth, where malls and high streets are no longer just transactional hubs but vibrant lifestyle destinations.
Delhi-NCR Leads the Way
According to CBRE, demand for retail spaces in malls and high streets in Delhi-NCR rose 25% between January and June 2025, with leasing activity touching around 5 lakh sq ft compared to 4 lakh sq ft in the same period last year. This rebound is particularly significant after the slowdown in 2024, when leased areas dropped to 10 lakh sq ft from 14 lakh sq ft in 2023.
The key question now is whether this momentum can sustain itself in the second half of 2025 and into 2026, especially given evolving consumer habits, economic conditions, and the rising expectations of both retailers and shoppers.
Tier-II Cities Catching Up
What’s equally noteworthy is how Tier-II cities are beginning to play a larger role. Developers are betting on rising consumption outside metros, with mixed-use projects and Grade A malls emerging as the most preferred formats. These developments are drawing both domestic and global brands eager to anchor themselves in high-quality, integrated lifestyle spaces.
Industry Voices on Retail Leasing Momentum
Pushpa Bector, DLF Mall of India
“The retail sector has proven its flexibility, and leasing momentum continues to reflect this strength. In a market like NCR, scale, innovation, and differentiation are critical. At DLF Mall of India, we focus on keeping our brand mix, entertainment, and dining refreshed to stay ahead of consumer expectations. Leasing interest is strong across categories—from fashion and lifestyle to F&B and experiential concepts—ensuring every visit feels new and engaging.”
Jatin Goel, Omaxe Group
“India’s retail leasing reflects consumer confidence and a structural shift toward experience-driven shopping. At Omaxe Chowk in Chandni Chowk, we’ve curated a modern yet heritage-inspired shopping experience, blending convenience with charm. Hosting a mix of national and international brands ensures physical retail remains compelling even in the digital age.”
Siddharth Katyal, Bhumika Realty
“The NCR market is at an inflection point, driven by a surge in consumption and the need for holistic retail experiences. Leasing activity reflects how brands want future-ready, accessible, and engaging spaces. Unlike a decade ago, retail today is about co-creating ecosystems with developers, where malls and high streets integrate shopping, dining, and community engagement.”
Harpreet Singh Hora, Reach Group
“Gurugram’s retail story has evolved beyond malls into a complete ecosystem that integrates lifestyle, work, and leisure. With its aspirational demographics, the city demands dynamic retail spaces. The next wave of leasing will come from adaptive formats, where retail blends with entertainment, F&B, and wellness. Gurugram is no longer just a secondary market but a primary retail destination.”
Economic Fundamentals Driving Growth
India’s strong economic fundamentals are supporting this momentum. Rising disposable incomes, steady GDP growth, and relatively stable inflation are encouraging consumer spending. This is most visible in discretionary categories such as luxury retail, F&B, and entertainment.
At the same time, government-led infrastructure upgrades—from metro connectivity and airports to highways—are improving accessibility to retail hubs, making them more attractive for both consumers and brands.
Outlook: Steady Growth Ahead
As India’s retail sector continues to evolve, leasing momentum is expected to remain strong. Brands are increasingly gravitating toward mixed-use developments and Grade A malls that seamlessly integrate shopping, dining, entertainment, and lifestyle experiences.
With robust fundamentals, consumer confidence, and a growing appetite for experience-driven retail, the outlook for 2025 and beyond remains positive—suggesting that India’s retail leasing story is only just beginning.
