Strong Start to 2025 for Indian Retail Leasing
Retail leasing in India has had a remarkable run through the first half of 2025. Brands across categories are expanding footprints, while developers are reporting healthy absorption of new spaces. What began as a post-pandemic recovery has now matured into a phase of steady, experience-led growth, where malls and high streets are evolving beyond transactional hubs into vibrant lifestyle destinations.
Delhi-NCR Leading the Growth Curve
In Delhi-NCR, demand for retail spaces in malls and high streets rose 25% between January and June 2025, according to CBRE. Leasing touched nearly 5 lakh sq. ft., compared with 4 lakh sq. ft. during the same period last year.
This rebound comes after a dip in 2024, when total leased space dropped to 10 lakh sq. ft. from 14 lakh sq. ft. in 2023. The renewed momentum raises the question: Can this growth sustain through the second half of 2025 and into 2026?
The Rise of Tier-II Cities and Mixed-Use Spaces
Interestingly, Tier-II cities are beginning to catch up as developers bet 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 high-quality, scalable, and integrated spaces.
Industry Leaders Weigh In
Experience-Driven Retail at DLF Mall of India
Pushpa Bector, Senior Executive Director and Business Head (Retail), DLF Mall of India, said:
“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’ve created one of the largest retail destinations in the country, where brand mix, entertainment, and dining are constantly refreshed to stay ahead of consumer expectations. Leasing interest is strong across categories—from fashion and lifestyle to F&B and experiential concepts.”
Blending Heritage with Modern Retail – Omaxe Group
Jatin Goel, Executive Director, Omaxe Group, added:
“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. This inclusive mix makes physical retail compelling even in the digital age, ensuring customers come for shopping but stay for the experience.”
NCR at an Inflection Point – Bhumika Realty
Siddharth Katyal, CEO, Bhumika Realty, said:
“The NCR market is at an inflection point, driven by rising consumption and demand for holistic retail experiences. Unlike a decade ago, retail today is about co-creating ecosystems with developers. NCR will increasingly pivot toward formats that integrate shopping, dining, and community engagement, ensuring sustained leasing demand in 2025 and beyond.”
Gurugram’s Lifestyle-Led Retail Growth – Reach Group
Harpreet Singh Hora, Director, Reach Group, highlighted:
“Gurugram’s retail story has evolved into an ecosystem integrating lifestyle, work, and leisure. The city’s young professionals, global citizens, and aspirational families are driving demand for dynamic and accessible retail spaces. The next wave of leasing will emerge from adaptive spaces—where retail blends seamlessly with entertainment, F&B, and wellness. For brands, Gurugram is now a primary destination with strong footfall quality and purchasing power.”
Economic and Policy Drivers Supporting Leasing Momentum
The retail leasing boom is being fueled by strong economic fundamentals:
-
Rising disposable incomes and stable GDP growth
-
Resilient consumer confidence despite global uncertainties
-
Relatively stable inflation supporting discretionary spending
Luxury brands, F&B outlets, and entertainment destinations are witnessing heightened interest, underscoring a shift toward experience-led discretionary consumption.
Additionally, government-led infrastructure projects—expanded metro networks, airport upgrades, and better highways—are improving accessibility, making retail hubs more attractive for both shoppers and retailers.
Outlook: Sustained Growth Through 2026
The outlook for retail leasing remains optimistic. Developers and brands are increasingly aligning with consumer demand for integrated lifestyle ecosystems that blend shopping, dining, entertainment, and wellness.
With strong fundamentals, rising consumption, and evolving consumer behavior, retail leasing momentum in India is poised to remain steady through 2025 and beyond into 2026.
