Retail leasing in Delhi-NCR jumps 25% as fashion, home brands expand

Fresh mall supply, rising footfalls and strong demand from apparel and homeware brands lift retail leasing in Delhi-NCR, with vacancies in top-grade spaces at historic lows

Retail real estate in Delhi-NCR is witnessing a revival, with leasing activity picking up pace in the first half of 2025. According to property consultant CBRE, demand for retail spaces in malls and high streets rose 25 per cent between January and June, reflecting both fresh supply and growing appetite from retailers.

 

Leasing momentum back after last year’s dip

CBRE data shows that leasing touched around 5 lakh sq ft in the January–June period, compared with 4 lakh sq ft in the same period last year. This comes after a slowdown in 2024, when the total number of areas on lease fell to 10 lakh sq ft from 14 lakh sq ft in 2023.

 

 

The rebound was supported by new mall supply, with about 3 lakh sq ft of fresh retail space hitting the market in the first six months this year. In contrast, no new mall supply was added during the same period in 2024. 

 

Who is driving the demand?

·  Fashion and apparel brands accounted for 35 per cent of leasing in H1 2025.

 

·  Homeware and departmental stores took up around 30 per cent of the new space.

 

·  The remaining share was split across food & beverage players and other lifestyle retailers.

 

The leasing numbers pertain to investment-grade malls, high streets, and standalone developments across Delhi-NCR.

 

Developers upbeat on growth

Industry voices, while talking to PTI, suggest that retail leasing is no longer only about transactions, but about creating experiences.

 

·  “Retail is no longer just about transactions, it is about creating vibrant destinations that connect communities, inspire engagement, and elevate everyday life,” said Ankit Sharma, senior vice president–leasing at Elan Group.

 

·  Gaurav Bansal, assistant vice-president and head leasing at Trehan Iris, highlighted the role of consumer behaviour. “With rising footfalls, robust spending patterns, and a preference for experience-led destinations, retailers are actively expanding their presence across prime and emerging markets.”

 

·  Rakesh Bohra, chief operating officer at Pioneer Urban, added that the outlook for Gurugram’s retail real estate remained strong with vacancies at less than 3 per cent in Grade A spaces. 

 

Experts believe Delhi-NCR’s retail market is set for steady growth in 2025, aided by a healthy pipeline of new malls, rising consumer spending, and continued interest from global and domestic retailers. With vacancies at historic lows and fashion brands leading the charge, developers see momentum sustaining across both prime city locations and upcoming hubs.

 

(with agency inputs)