Retail Leasing in Delhi-NCR Surges 25% as Fashion and Home Brands Drive Revival

The retail real estate market in Delhi-NCR is making a strong comeback, with leasing activity jumping 25% in the first half of 2025, fueled by fresh mall supply and growing demand from fashion, homeware, and lifestyle brands.

According to data released by property consultancy CBRE, retail leasing across malls, high streets, and standalone outlets in the region reached nearly 500,000 sq ft between January and June, up from 400,000 sq ft during the same period last year. The rebound comes after a dip in 2024, when annual leasing fell to 1 million sq ft from 1.4 million sq ft in 2023.

New Supply, New Momentum

The surge in activity has been buoyed by the addition of 300,000 sq ft of new mall space in the first half of 2025—marking a significant change from the same period in 2024, when no new retail developments were introduced.

CBRE’s report points to a tightening retail market, especially in premium locations, with Grade A retail vacancies dropping to historic lows.

Who’s Leading the Charge?

Fashion and lifestyle brands remain at the forefront of the leasing boom:

• Fashion and apparel players accounted for 35% of total leasing in H1 2025.
• Homeware and department stores made up around 30%.
• The remaining demand came from food & beverage operators and other lifestyle retailers.

Industry Optimism on the Rise

Retail developers and leasing heads say the market is evolving beyond transactional models, with a focus on curated experiences and community engagement.

“Retail is no longer just about transactions,” said Ankit Sharma, SVP–Leasing at Elan Group. “It’s about creating vibrant destinations that connect communities and elevate everyday life.”

Gaurav Bansal, AVP and Head of Leasing at Trehan Iris, echoed the sentiment, “We’re seeing rising footfalls, robust spending, and a clear preference for experience-driven retail destinations. This is encouraging retailers to expand aggressively in both prime and emerging locations.”

In Gurugram, where the market remains particularly buoyant, vacancy rates in Grade A retail spaces are now under 3%, according to Rakesh Bohra, COO at Pioneer Urban.

Outlook: Steady Growth Ahead

With a healthy pipeline of new mall projects, rising consumer spending, and sustained interest from both global and domestic brands, experts say the Delhi-NCR retail market is poised for continued growth through 2025.

Leasing momentum is expected to stay strong in both well-established city locations and upcoming suburban hubs, solidifying the region’s position as a retail hotspot.

(Source: PTI)