Retail leasing in India has witnessed a remarkable run through the first half of 2025, with brands across categories expanding their footprints and developers reporting healthy absorption of new spaces. What began as a post-pandemic recovery has now matured into a steady, experience-led growth phase. Malls and high-street formats are no longer just transactional hubs; they have evolved into vibrant destinations for shopping, leisure, and lifestyle.
NCR Leads the Growth Story
In Delhi-NCR, demand for retail spaces in malls and high streets surged 25% between January and June 2025. According to CBRE, leasing activity touched around 5 lakh sq ft in this period, compared to 4 lakh sq ft in the same timeframe last year. This rebound comes after a slowdown in 2024, when leased space had dropped to 10 lakh sq ft from 14 lakh sq ft in 2023.
The key question now: Can this momentum sustain itself into the second half of 2025 and beyond, as consumer habits, economic signals, and brand strategies continue to evolve?
Tier-II Cities Rise on the Map
While metros continue to dominate, Tier-II cities are steadily catching up. Developers are betting on rising consumption potential outside traditional hubs, pushing investments into mixed-use projects and Grade A malls. These formats attract both domestic and international brands, eager to anchor themselves in spaces that offer scale, quality, and integrated lifestyle experiences.
Insights from Industry Leaders
Scale, Innovation, and Differentiation: The DLF Approach
Pushpa Bector, Senior Executive Director and Business Head (Retail), DLF Mall of India, noted:
“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 constantly refresh our brand mix, entertainment, and dining to stay ahead of consumer expectations. Leasing interest is strong across categories—from fashion and lifestyle to F&B and experiential concepts.”
Experience at the Core: Omaxe’s Strategy
Jatin Goel, Executive Director, Omaxe Group, emphasized:
“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 blending convenience with heritage charm. This inclusive mix is what makes physical retail compelling, ensuring that customers come for shopping but stay for the experience.”
Future-Ready Ecosystems: Bhumika Realty’s Outlook
Siddharth Katyal, CEO, Bhumika Realty, observed:
“The NCR market is at an inflection point, driven by consumption and the demand for holistic retail experiences. Leasing activity here shows brands want to be present in future-ready, accessible, and engaging spaces. Today, retail is about co-creating ecosystems with developers.”
Gurugram’s Retail Evolution: Reach Group’s Perspective
Harpreet Singh Hora, Director, Reach Group, highlighted:
“Gurugram’s retail story has moved from being mall-centric to a lifestyle ecosystem integrating work, leisure, and wellness. With young professionals and aspirational families driving demand, the next leasing wave will come from adaptive spaces blending retail, F&B, entertainment, and wellness. Gurugram is now a primary retail destination, not just a secondary market to Delhi.”
Economic and Policy Tailwinds
Strong economic fundamentals underpin the ongoing retail leasing boom. Rising disposable incomes, stable inflation, and steady GDP growth are boosting consumer confidence. Discretionary categories—luxury, F&B, and entertainment—are especially witnessing strong demand.
Government-led infrastructure initiatives, such as expanded metro connectivity, airport upgrades, and improved highways, are further enhancing retail accessibility, making malls and high streets more attractive for both consumers and brands.
Outlook for 2025 and Beyond
The momentum in retail leasing is expected to remain steady in the near term. Brands are increasingly gravitating toward mixed-use developments and Grade A malls that seamlessly integrate shopping, dining, entertainment, and lifestyle experiences. With consumer demand shifting toward holistic experiences, developers and retailers who adapt quickly will remain at the forefront of India’s retail growth story.
