Retail leasing in India witnessed robust growth in the first half of 2025, with brands across categories expanding their footprints and developers reporting healthy absorption of new spaces. The recovery that began post-pandemic has now matured into steady, experience-led growth. Today, malls and high-street formats are no longer just transactional spaces but vibrant lifestyle destinations.
According to CBRE, retail space demand in Delhi-NCR rose by 25% between January and June 2025. Leasing touched 5 lakh sq. ft. during this period, compared to 4 lakh sq. ft. last year. This bounce-back comes after a slowdown in 2024, when total leasing fell to 10 lakh sq. ft. from 14 lakh sq. ft. in 2023.
Key Question: Can Growth Be Sustained?
The critical question now is whether this momentum will sustain through the second half of 2025 and into 2026. With evolving consumer habits, economic signals, and shifting expectations of both brands and shoppers, the retail sector is entering a defining phase.
Tier-II cities are also emerging as growth engines, with developers betting on rising consumption potential outside metros. Mixed-use projects and Grade A malls continue to dominate, attracting both domestic and global brands eager to secure prime retail spaces.
Industry Leaders Speak
Pushpa Bector – DLF Mall of India
“The retail sector has proven its flexibility, and leasing momentum continues to reflect this strength. At DLF Mall of India, we’ve built one of the largest retail destinations in the country, where the brand mix, entertainment, and dining are constantly refreshed. Leasing interest is strong across categories—from fashion and lifestyle to F&B and experiential concepts. Our goal is to ensure every visit feels new, encouraging repeat footfalls and positioning the mall as a dynamic hub for both brands and consumers.”
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, hassle-free shopping experience that blends convenience with heritage. Hosting both national and international brands, we’ve ensured that physical retail remains compelling even in the digital age.”
Siddharth Katyal – Bhumika Realty
“The NCR market is at an inflection point, driven by consumption growth and demand for holistic retail experiences. Today, leasing is about co-creating ecosystems with developers. Malls and high streets are pivoting to integrated formats that combine shopping, dining, and community engagement—ensuring sustained leasing demand in 2025 and beyond.”
Harpreet Singh Hora – Reach Group
“Gurugram’s retail journey has transformed into an ecosystem that integrates lifestyle, work, and leisure. With young professionals and aspirational families driving demand, the next wave of leasing will focus on adaptive spaces that merge retail with entertainment, F&B, and wellness. Gurugram is no longer secondary to Delhi—it’s now a prime retail destination.”
Economic and Policy Tailwinds
Strong economic fundamentals are underpinning retail leasing momentum. Rising disposable incomes, a steady GDP trajectory, and stable inflation are giving consumers confidence to spend. This is especially visible in discretionary categories such as luxury retail, F&B, and entertainment.
At the same time, government-led infrastructure initiatives—including expanded metro networks, airport upgrades, and improved highways—are enhancing accessibility to retail hubs. This makes both malls and high-streets more attractive to consumers and brands alike.
Outlook: The Future of Retail Leasing
The leasing momentum is expected to remain steady in the near future, with brands gravitating toward mixed-use developments and Grade A malls. These formats seamlessly integrate shopping, dining, entertainment, and lifestyle experiences, making them the preferred choice for both retailers and consumers.
As India’s retail landscape evolves, it is becoming clear that experience-led formats will define the sector’s growth trajectory, ensuring that leasing remains a vibrant driver of commercial real estate in 2025 and beyond.
