Fashion and Apparel Boost Retail Leasing in Delhi-NCR: CBRE Report
Delhi-NCR's retail real estate market is witnessing a significant recovery in the first half of 2025, with a 25% increase in leasing activity. The fashion and apparel sector is the primary driver, followed by homeware and departmental stores.
Retail Real EstateDelhincrLeasing ActivityFashion And ApparelConsumer SpendingReal Estate NewsSep 09, 2025
The surge in leasing is evident in the numbers, with approximately 5 lakh sq. ft. leased in the first half of 2025, a notable increase from the 4 lakh sq. ft. leased during the same period in 2024. This rebound was greatly helped by the addition of about 3 lakh sq. ft. of new retail space, as no new malls were completed in the first half of the previous year.
The demand for these spaces is primarily driven by the fashion and apparel sector, which accounted for 35 percent of all leases. Homeware and departmental stores were also major players, taking up roughly 30 percent of the new space. The remaining demand came from food & beverage outlets and other lifestyle retailers. These leasing figures reflect activity in top-tier malls, high streets, and standalone developments across the Delhi-NCR region.
Developers are optimistic about this growth, emphasising that modern retail is focused on creating experiences, not just transactions. Industry leaders note that a rise in consumer footfall and spending is encouraging retailers to expand into both prime and emerging markets. With vacancy rates in top-tier spaces in Gurugram at less than 3 percent, the market remains strong. Experts predict that Delhi-NCR's retail market will continue to grow steadily throughout 2025, supported by a healthy pipeline of new malls, strong consumer spending, and sustained interest from both global and domestic retailers.
This positive trend in the retail sector is a promising sign for the overall economic health of the region, as it indicates a robust consumer base and a willingness among retailers to invest in new markets. The combination of new retail spaces and a focus on experiential shopping is likely to attract more foot traffic and drive further growth in the coming months.
Frequently Asked Questions
What is the primary driver of the leasing activity in Delhi-NCR's retail market?
The primary driver of the leasing activity in Delhi-NCR's retail market is the fashion and apparel sector, which accounted for 35 percent of all leases.
How much new retail space was added in the first half of 2025?
Approximately 3 lakh sq. ft. of new retail space was added in the first half of 2025.
What other sectors are contributing to the leasing activity besides fashion and apparel?
Homeware and departmental stores are also major players, taking up roughly 30 percent of the new space. The remaining demand comes from food & beverage outlets and other lifestyle retailers.
What is the current vacancy rate in top-tier spaces in Gurugram?
The current vacancy rate in top-tier spaces in Gurugram is less than 3 percent.
What are the predictions for the Delhi-NCR retail market in 2025?
Experts predict that Delhi-NCR's retail market will continue to grow steadily throughout 2025, supported by a healthy pipeline of new malls, strong consumer spending, and sustained interest from both global and domestic retailers.
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