Retail leasing in India has entered a defining chapter in 2025, riding on the back of strong consumer demand and an evolving appetite for experiences over mere transactions. What began as a post-pandemic rebound has now matured into a phase of steady, experience-driven growth where malls and high-street formats are being reimagined as lifestyle destinations rather than just shopping hubs. Developers are reporting robust absorption of space, while brands across categories—from fashion and lifestyle to food and beverage (F&B), wellness, and premium retail—are actively expanding their footprints to capture this momentum. The country’s retail real estate pipeline reflects this optimism, with nearly 30 million square feet of fresh developments expected by 2030. Notably, the F&B sector alone is projected to account for around 6 million square feet by 2028, underscoring how dining, entertainment, and leisure are increasingly intertwined with retail, transforming consumer journeys and powering the sector’s next phase of growth.
Lifestyle and Premium Brands as the New Anchors
Lifestyle and premium brands are increasingly becoming the central anchors of India’s retail real estate boom, setting the tone for development and leasing strategies nationwide. A recent JLL report projects that of the ~30 million square feet of retail space in the development pipeline through 2030, around 6 million square feet will be occupied by the food & beverage (F&B) sector by 2028, signaling how dining is no longer peripheral but core to future malls and high-streets. High-street formats are now capturing more than 50% of new F&B leasing, showing developers and premium brands favour locations that offer greater flexibility and visibility. In Delhi-NCR, emerging corridors such as Sector 99, Gurugram, are gaining traction for their strategic connectivity, proximity to Dwarka Expressway, and growing residential catchment—making them ideal hubs for lifestyle and premium brands to anchor new retail formats. With over 20 international F&B brands entering India since 2023, led by U.S. players, it’s clear that premium, lifestyle‐oriented consumption is powering retail real estate demand. From Shopping Hubs to Experience Hubs India’s retail landscape is moving beyond transactional shopping to experience-driven destinations. In Delhi-NCR, retail leasing jumped 25% in H1 2025, with nearly 5 lakh sq ft absorbed compared to 4 lakh sq ft last year. A significant boost came from new mall supply and strong demand in prime high-street locations, where vacancy levels remain low. This surge reflects how developers and brands are prioritising ambience, design, and consumer engagement over just storefronts. Lifestyle, homeware, apparel, and F&B players are expanding with formats that encourage longer dwell times, integrated dining, and entertainment. For today’s shoppers, retail trips are no longer about purchases alone—they are about discovery, leisure, and community, transforming malls and high-streets into vibrant lifestyle hubs.Emerging hubs like Sector 99, Gurugram, are witnessing strong traction, with growing residential density and excellent connectivity attracting premium and lifestyle brands. The area is fast evolving into an experience-led retail zone, blending shopping with leisure and community living.
Omnichannel as a Growth Catalyst
In Delhi-NCR, the rise of omnichannel strategies is reshaping how retail spaces are planned and absorbed. Brands expanding in the region are no longer viewing physical stores as stand-alone touchpoints but as extensions of their digital presence. According to industry reports, leasing momentum in NCR has been driven not only by lifestyle and F&B brands but also by those looking for spaces that support hybrid models such as click-and-collect, digital ordering, and last-mile fulfilment. With consumers in the capital region expecting seamless online-offline experiences, developers are increasingly upgrading mall infrastructure and high-street formats with tech-enabled layouts and logistics support. This shift is ensuring that physical retail in NCR remains central to brand building while complementing e-commerce growth.
India’s retail real estate is entering a transformative phase, led by lifestyle and premium brands, experience-driven formats, and omnichannel integration. Delhi-NCR exemplifies this shift, where leasing demand is being fuelled by consumers seeking more than just shopping—they want discovery, leisure, and connection. Developers and retailers that embrace this evolution, curating spaces as lifestyle ecosystems with dining, entertainment, and digital touchpoints, will be best placed to capture growth and shape the future of India’s retail landscape.
Authored By:Prakash Mehta, Chairman and Managing Director, Ocus Group
