Delhi-NCR Sees 25% Rise in Demand for Retail Spaces in H1 2025, Apparel Firms Drive Leasing: CBRE

The retail leasing market in Delhi-NCR has seen a significant uptick, with a 25% increase in the leasing of retail spaces in the first half of 2025 compared to the same period in 2024. According to real estate consultant CBRE, the market saw leasing of 5 lakh sq ft of retail spaces in January-June 2025, up from 4 lakh sq ft in the corresponding period last year.

Fashion and apparel brands were the primary drivers of this growth, accounting for 35% of the total leasing activity. Homeware and departmental stores also played a significant role, taking up 30% of the retail spaces. CBRE's data pertains to leasing in investment-grade shopping malls, high streets, and standalone developments.

Despite the increase in leasing, the supply of new retail spaces in shopping malls was relatively low, with only 3 lakh sq ft of fresh supply during the first half of 2025. This is a significant improvement from the previous year, which saw zero new supply in the same period. The total leasing of retail spaces in Delhi-NCR fell to 10 lakh sq ft in 2024 from 14 lakh sq ft in 2023, indicating a rebound in the market this year.

Ankit Sharma, SVP-Leasing at Elan Group, commented on the trend, stating, “Retail is no longer just about transactions; it is about creating vibrant destinations that connect communities, inspire engagement, and elevate everyday life.” Elan Group, based in Gurugram, has developed several retail real estate projects in the region.

Gaurav Bansal, AVP and Head Leasing at Trehan Iris, added, “The strong momentum in retail leasing and supply during H1 reflects the sector’s resilience and evolving consumer demand. 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, COO of Pioneer Urban, noted that Gurgaon’s retail real estate outlook for 2025 seems promising, driven by increasing demand for Grade A retail spaces and high-street formats. “The mall vacancies are low, with high-grade spaces seeing a vacancy of less than 3 per cent,” he added.

This positive trend in the retail sector is a clear indication of the growing consumer confidence and the resilience of the retail market in the face of economic challenges. As more brands look to expand their physical presence, the demand for quality retail spaces is expected to remain strong in the coming months.