Retail leasing in India has had a remarkable run through the first half of 2025, with brands across categories expanding footprints and developers reporting healthy absorption of new spaces. The recovery that began post-pandemic has matured into a phase of steady, experience-led growth, where malls and high-street formats are no longer just transactional hubs but vibrant destinations.
Delhi-NCR Leads the Growth Curve
In Delhi-NCR, demand for retail spaces in malls and high streets rose 25% between January and June 2025, reflecting both fresh supply and growing appetite from retailers, as per CBRE. Leasing touched around 5 lakh sq ft in January–June, compared with 4 lakh sq ft in the same period last year.
This rebound comes after a slowdown in 2024, when total leased areas dropped to 10 lakh sq ft from 14 lakh sq ft in 2023. The big question now is whether this momentum can sustain itself as we move into the second half of 2025 and into 2026.
Tier-II Cities Catching Up
What’s equally noteworthy is how Tier-II cities are beginning to catch up, with developers betting on rising consumption potential outside traditional metros. Mixed-use projects and Grade A malls remain the preferred formats, attracting both domestic and international brands eager to anchor themselves in spaces that offer scale, quality, and integrated lifestyle experiences.
Industry Voices: Developers on the Future of Leasing
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, our goal is to keep every visit fresh with a brand mix, entertainment, and dining that evolve constantly. Leasing interest is strong across categories—from fashion and lifestyle to F&B and experiential concepts.”
Jatin Goel, Omaxe Group
“India’s retail leasing momentum reflects both consumer confidence and a structural shift toward experience-driven shopping. At Omaxe Chowk, we’ve curated a modern, hassle-free shopping experience in the heart of Chandni Chowk, blending convenience with heritage charm. By hosting a wide mix of national and international brands, physical retail continues to prove its relevance in the digital age.”
Siddharth Katyal, Bhumika Realty
“The NCR market is at an inflection point, driven by a surge in consumption and the desire for holistic retail experiences. Leasing activity here reflects a broader trend—brands want to be in spaces that are future-ready, accessible, and engaging. Retail today is about co-creating ecosystems with developers.”
Harpreet Singh Hora, Reach Group
“Gurugram’s retail story has evolved into an ecosystem integrating lifestyle, work, and leisure. With a young, global, and aspirational demographic, demand is rising for adaptive spaces where retail blends seamlessly with entertainment, F&B, and wellness. For brands, Gurugram is now a primary destination, not just an extension of Delhi.”
Strong Fundamentals Driving Growth
India’s retail leasing momentum is backed by strong economic fundamentals. Rising disposable incomes, a steady GDP trajectory, and relatively stable inflation are fueling consumer confidence. Discretionary categories such as luxury, F&B, and entertainment are witnessing heightened interest from both brands and shoppers.
Infrastructure as a Catalyst
Government-led infrastructure initiatives—expanded metro connectivity, airport upgrades, and better highways—are enhancing accessibility to retail hubs. This has made malls and high streets more attractive for consumers and brands alike, ensuring steady leasing demand.
The Road Ahead
Leasing momentum is expected to remain steady in 2025 and beyond, with brands increasingly gravitating toward mixed-use developments and Grade A malls that integrate shopping, dining, entertainment, and lifestyle experiences. As Tier-II cities rise and metros innovate, India’s retail landscape is set for a transformative phase of growth.
