Delhi-NCR Real Estate: Mall Developers Bullish on Retail Growth After Q3 Leasing Surge

Mall developers in Delhi-NCR are becoming increasingly bullish on the retail sector, driven by a significant surge in leasing activity. According to data from Cushman & Wakefield, retail leasing in the region reached 0.5 million sq ft in Q3 2025, up 70% quarter-on-quarter and 88% year-on-year. Of this, about 29,000 sq ft was fresh absorption, while the rest was driven by churn and renewals.

Gurugram continued to lead the leasing activity, accounting for 68% of leasing in the quarter, followed by Noida (20%) and Delhi (12%). This trend reflects a structural shift in how organized retail is evolving in the region.

Robin Mangla, President of M3M India, commented, “This trend signals a long-term transformation in the retail ecosystem, where the focus will be on creating vibrant, community-centric hubs that drive footfall, enhance customer engagement, and unlock sustainable growth for investors and developers alike. At M3M, we view this as a pivotal moment to shape the future of retail, creating experiential destinations that blend innovation, convenience, and sustainability.”

Food and beverage (F&B) continued to be the strongest demand driver, accounting for 40% of leasing during the quarter, followed by wellness and entertainment at 12% each. The F&B segment saw a 1.7x growth from a year earlier. “Consumers are increasingly seeking unique dining experiences, and in response, mall operators are allocating more space to F&B segments,” the report noted. This shift reflects a move toward destinations that encourage community interaction and socializing.

Main streets made up 58% of F&B leasing in the quarter, with malls accounting for the remaining 42%. Gaurav Bansal, AVP and Leasing Head at Trehan Iris, said, “This growth showcases the city’s robust infrastructure, strategic connectivity, and its emergence as a preferred destination for global and domestic brands. For developers, this momentum translates into greater opportunities to create integrated spaces that blend retail, entertainment, and lifestyle.”

Despite strong demand, supply constraints remain a challenge. Vacancy in superior malls remained exceptionally tight at around 3%, compared with nearly 19% in non-Grade A centers. Approximately 0.5 million sq ft of new Grade A mall space is expected to become operational in Delhi by year-end.

Leasing momentum during the quarter was particularly strong in Gurugram’s Sectors 52, 65, and 70. Vijay Harsh Jha, Founder and CEO of VS Realtors, said the city remains one of the most aspirational destinations in India. “The growth in offices has created a positive ripple effect for malls and housing in the region. The malls in the city will continue to attract shoppers from far and wide, and with strong infrastructure connectivity, the drivers for growth are real,” he said.

In summary, the retail sector in Delhi-NCR is experiencing a significant upturn, driven by a combination of strong consumer demand, strategic location, and a focus on creating engaging, community-centric destinations. Developers are optimistic about the future, seeing this as a pivotal moment to shape the retail landscape in the region.