Retail leasing in India has seen a remarkable run through the first half of 2025. Brands across categories are expanding footprints, while developers report healthy absorption of new spaces. What started as a post-pandemic recovery has now matured into a phase of steady, experience-led growth. Malls and high-street formats are no longer just transactional hubs but have transformed into vibrant lifestyle destinations.
According to CBRE, retail space demand in Delhi-NCR rose by 25% between January and June 2025, driven by both fresh supply and strong appetite from retailers. Leasing touched nearly 5 lakh sq. ft., compared with 4 lakh sq. ft. in the same period last year. This growth comes after a slowdown in 2024, when leasing fell to 10 lakh sq. ft. from 14 lakh sq. ft. in 2023.
Key Question: Can Momentum Sustain?
The big question is whether this momentum will hold as we move into the second half of 2025 and beyond into 2026. Consumer habits are evolving, economic signals remain dynamic, and both brands and shoppers now expect more from retail destinations.
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 continue to dominate demand, attracting both domestic and international brands eager to anchor themselves in quality spaces that offer scale, accessibility, and integrated experiences.
Insights from Industry Leaders
DLF Mall of India: Scale and Innovation Matter
Pushpa Bector, Senior Executive Director and Business Head (Retail), DLF Mall of India, notes:
“The retail sector has proven its flexibility, and leasing momentum continues to reflect this strength. Scale, innovation, and differentiation are critical. Leasing interest is strong across categories—from fashion and lifestyle to F&B and experiential concepts. Our goal is to ensure that every visit feels new, encouraging repeat footfalls and cementing the mall as a dynamic hub for both brands and consumers.”
Omaxe Group: Blending Modernity with Heritage
Jatin Goel, Executive Director, Omaxe Group, highlights:
“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 Chandni Chowk, blending convenience with heritage charm. By hosting brands across categories, we ensure customers come for shopping but stay for the experience.”
Bhumika Realty: NCR as a Retail Model for India
Siddharth Katyal, CEO, Bhumika Realty, observes:
“The NCR market is at an inflection point, driven by a surge in consumption and the desire for holistic retail experiences. Unlike a decade ago, retail today is about co-creating ecosystems with developers. We see NCR as a model for India’s retail future, where malls and high streets will increasingly pivot toward integrated formats that combine shopping, dining, and community engagement.”
Reach Group: Gurugram’s Evolving Retail Landscape
Harpreet Singh Hora, Director, Reach Group, adds:
“Gurugram’s retail story has evolved into an ecosystem integrating lifestyle, work, and leisure. With young professionals and aspirational families driving demand, the next wave of leasing will come 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.”
Strong Fundamentals Supporting Growth
India’s economic fundamentals are underpinning this retail leasing momentum. Rising disposable incomes, a steady GDP trajectory, and stable inflation have boosted consumer confidence and spending power. Discretionary categories such as luxury brands, F&B outlets, and entertainment destinations are witnessing heightened interest.
Additionally, government-led infrastructure initiatives—including expanded metro networks, airport upgrades, and highway improvements—are enhancing accessibility to retail hubs, making them more attractive for consumers and brands alike.
Outlook: A Steady Momentum Ahead
Looking ahead, leasing momentum is expected to remain steady. Brands are increasingly gravitating toward mixed-use developments and Grade A malls, where shopping, dining, entertainment, and lifestyle experiences merge seamlessly.
Retail leasing in India is no longer just about space—it is about building destination ecosystems. With strong consumer demand, supportive economic fundamentals, and innovative developer strategies, the retail sector seems poised for continued growth in 2025 and beyond.
