India’s retail real estate sector is witnessing a remarkable upswing, fuelled by favourable demographics, rising disposable incomes, and a generational shift in consumer behaviour. What was once an industry focused on building bigger malls and increasing store counts has now evolved into a new era—one that prioritises experience-led, multi-sensory retail destinations.
According to CBRE’s India Market Monitor Q2 2025 – Retail, the first half of 2025 recorded 2.2 million sq. ft. of new operational retail space. Fashion and apparel brands dominated leasing activity, taking a 37% share in Q2, while mall operators diversified tenant mixes with entertainment, food and beverage, and innovative retail formats. This trend is unlocking prime opportunities for both domestic and international brands.
Generational Shift Driving Retail Design
India’s urban millennials, Gen Z, and even the younger Gen Alpha are rewriting the rules of retail. No longer satisfied with transactional shopping, they demand integrated experiences that merge shopping with leisure, dining, and culture.
Developers are rapidly responding by creating mixed-use ecosystems that blend retail with co-working spaces, entertainment hubs, and lifestyle-driven amenities.
Sanchit Bhutani, Managing Director of Group 108, explains:
“Noida–Greater Noida is fast emerging as the epicentre of retail and commercial growth. We are witnessing a strong demand shift towards Grade A spaces that seamlessly integrate shopping, dining, and work environments. Especially along key corridors like the Noida–Greater Noida Expressway, these developments are evolving into vibrant destinations that reflect consumer and business aspirations.”
Emerging Hubs Reshaping India’s Retail Map
While metro cities continue to lead, emerging hubs are driving the next phase of retail expansion. Gurugram, in particular, is seeing rapid transformation across its high-growth commercial corridors.
Pankaj Jain, Founder and CMD of SPJ Group, highlights this shift:
“The true retail renaissance is happening in untapped pockets with diverse spending patterns. These locations are ripe for curated formats that blend convenience with discovery.”
A JLL report supports this momentum, noting that retail leasing in H1 2025 grew 69% year-on-year, with the top seven cities recording 5.7 million sq. ft. of space leased. Bengaluru and Delhi NCR contributed nearly half of Q2’s gross leasing, led by jewellery, home furnishings, and food and beverage brands.
High-Street Formats Regaining Popularity
While malls dominate in scale, high-street retail formats are experiencing a revival—especially in walkable, community-focused corridors.
Ashwani Kumar of Pyramid Infratech points to Gurugram’s Dwarka Expressway and Southern Peripheral Road as rising destinations:
“These corridors offer walkable, human-scale shopping districts that act as vibrant anchors for surrounding communities.”
Similarly, Prakash Mehta, CMD of Ocus Group, sees strong potential in premium retail hubs across Gurugram’s micro-markets:
“Strategic locations such as Sector 68 are gaining traction due to proximity to residential clusters and superior connectivity.”
Technology and Personalisation Powering the Future
The sector’s future growth is being accelerated by AI-driven personalisation, omnichannel retail integration, and upgraded infrastructure. Investors and developers are increasingly aligning projects with consumer-centric design, smart technology, and sustainable practices.
This convergence ensures that India’s retail real estate boom is not just about square footage, but about creating immersive, connected, and resilient retail environments.
Conclusion: A Market Poised for Sustained Growth
With experience-led spaces, evolving consumer demands, and rapid urbanisation, India’s retail real estate market is firmly on an upward trajectory. From premium malls in metro corridors to high-street hubs in emerging cities, the sector is diversifying at an unprecedented pace.
As developers, investors, and global brands converge on India’s urban landscape, the country’s retail real estate boom is set to remain one of the most dynamic growth stories in the global market.
