India's Retail Leasing Outlook 2025: Sustaining the Momentum

Explore the current trends and future prospects of retail leasing in India, focusing on the shift towards experience-driven spaces and the growth in Tier-II cities.

Retail LeasingIndiaExperiencedriven RetailTierii CitiesConsumer BehaviorReal EstateSep 27, 2025

India's Retail Leasing Outlook 2025: Sustaining the Momentum

Real Estate:Retail leasing in India has entered a new growth phase in 2025, with demand for high-quality mall and high-street spaces surging across major metros and increasingly in Tier-II cities. What began as a post-pandemic rebound has now matured into a steady, experience-led expansion cycle that is reshaping how both developers and brands view physical retail.

According to CBRE data, retail space absorption in Delhi-NCR rose 25% year-on-year in the first half of 2025, with leasing activity touching around 5 lakh sq. ft. between January and June, compared with 4 lakh sq. ft. during the same period last year. This sharp recovery follows a 2024 slowdown, when leased space volumes in NCR had dropped to 10 lakh sq. ft. from 14 lakh sq. ft. in 2023.

The big question is whether this leasing momentum can sustain itself in the second half of 2025 and into 2026—especially amid evolving consumer behavior, macroeconomic signals, and increasing competition among retail formats.

Experience Over Transactions: A New Era for Retail

If one theme unites India’s retail story today, it is the pivot to experience-driven spaces. Malls and high streets are no longer just transactional hubs but are being designed as vibrant destinations where shopping, dining, entertainment, and community come together.

“Leasing momentum continues to reflect the sector’s flexibility and strength,” says Pushpa Bector, Senior Executive Director and Business Head (Retail), DLF Mall of India. “In a market like NCR, scale, innovation, and differentiation are critical. At DLF Mall of India, we’ve built one of the largest retail destinations in the country, where the brand mix, entertainment, and dining are constantly refreshed. Leasing interest is strong across categories—from fashion and lifestyle to F&B and experiential concepts. Our goal is to ensure that every visit feels new, encouraging repeat footfalls and cementing the mall as a dynamic hub.”

For many developers, this focus on curated experiences is proving essential in an era where e-commerce is ubiquitous but cannot replicate the emotional and social draw of physical retail.

Anchors of Growth: Developers’ Perspectives

At Omaxe Chowk in Chandni Chowk, the blending of modern retail convenience with heritage appeal is at the heart of the strategy. Jatin Goel, Executive Director, Omaxe Group, notes: “India’s retail leasing momentum reflects both consumer confidence and a structural shift toward experience-driven shopping. By hosting brands across categories, national and international, we offer something for every shopper. This inclusive mix makes physical retail compelling even in the digital age.”

Similarly, Siddharth Katyal, CEO of Bhumika Realty, sees leasing activity in NCR as part of a broader transformation. “The NCR market is at an inflection point, driven by a surge in consumption and the desire for holistic retail experiences. Unlike a decade ago, retail today is about co-creating ecosystems with developers. Malls and high streets will increasingly pivot to formats that integrate shopping, dining, and community engagement, ensuring sustained leasing demand in 2025 and beyond.”

Gurugram, once seen as a secondary retail destination to Delhi, has also come into its own. Harpreet Singh Hora, Director, Reach Group, explains: “The city’s demographics, comprising young professionals, global citizens, and aspirational families, are driving demand for retail spaces that feel relevant, dynamic, and accessible. For brands, Gurugram is no longer just a secondary market—it’s a primary destination where footfall quality and purchasing power make leasing attractive long-term.”

Arjun Gehlot, Director, Ambience Malls, highlights how infrastructure upgrades are bolstering demand: “Rising disposable incomes, strong metro connectivity, and transformative infrastructure have reshaped NCR’s retail landscape. Gurugram now rivals Delhi as a magnet for top-tier brands. At Ambience, we’re crafting immersive, multi-sensory environments that go beyond traditional shopping, with global luxury labels, Indian designers, and dining options. With increasing leasing queries, we are confident this momentum will continue.”

Tier-II Cities: The Next Frontier

Beyond metros, developers and brands are betting on rising consumption in Tier-II cities. With growing aspirations and improved connectivity, these markets are attracting mixed-use projects and Grade A malls.

“Brands today seek more than space—they want integrated, experience-driven destinations,” says Robin Mangla, President, M3M India. “We are seeing robust demand in Delhi-NCR and encouraging traction in Tier-II cities, led by mixed-use projects and Grade A malls. This momentum is set to sustain as developers and retailers collaborate to create lifestyle hubs.”

Manish Agarwal, Managing Director, Satya Group and President of CREDAI (Haryana), underscores the long-term opportunity: “Retail and commercial leasing are the building blocks of future-ready urban ecosystems. The opportunity lies in creating spaces that are adaptive, experiential, and deeply integrated with lifestyle needs. The momentum in retail leasing is being shaped by demand for Grade A spaces and mixed-use formats. The future of retail is not only about scale but also about relevance and resonance.”

Competing on Differentiation

With supply expanding, developers are increasingly competing on differentiation rather than just scale.

Abhishek Bansal, Managing Director, Pacific Malls, points to a track record of introducing market-first brands: “India’s retail leasing landscape is now more competitive than ever. At Pacific Malls, we’ve curated a remarkable retail mix—from Faridabad’s first H&M to Delhi’s first IKEA. Sustained brand interest shows that well-conceived spaces will continue to drive leasing.”

For Vikas Bhasin, Managing Director, Saya Group, family-oriented formats remain a key focus. “Today’s malls are lifestyle hubs where families shop, dine, and get entertained. At Saya South X and Saya Piazza in Noida, we are curating a tenant mix designed to attract and engage families, with branded outlets, restaurants, entertainment, and service tenants. These projects aim to become community destinations.”

Ravinder Choudhary, Vice President, Vegas Mall, adds: “Delhi-NCR’s mall culture has evolved significantly. Consumers are drawn to engaging, immersive, and memorable experiences. At Vegas, we focus on a premium mix of tenants alongside experiential zones, ensuring every visit feels fresh.”

Aman Trehan, Executive Director, Trehan Iris, echoes the trend: “Retail today is no longer just transactional—it is experiential. With mixed-use formats, strategic locations, and curated brand mixes, our developments are driving strong leasing demand.”

Outlook: Momentum with Caution

The consensus across developers is clear: retail leasing in India is riding strong fundamentals—rising incomes, aspirational consumers, supportive infrastructure, and a pivot toward experience. But sustaining this momentum will depend on keeping formats relevant in an increasingly competitive and omnichannel world.

As DLF’s Bector notes, the ability to refresh experiences will separate winners from laggards. And as Satya Group’s Agarwal emphasizes, the future is about creating ecosystems that resonate with consumers rather than just filling space.

In short, India’s retail leasing momentum looks set to hold steady into 2026, but the market is entering a new era—one where scale and supply alone won’t guarantee success. Developers who can curate engaging, future-ready destinations will define the next chapter of India’s retail story.

Frequently Asked Questions

What is driving the surge in retail leasing in India in 2025?

The surge in retail leasing in India in 2025 is driven by rising incomes, aspirational consumers, supportive infrastructure, and a shift towards experience-driven retail spaces.

How are developers adapting to the new retail landscape?

Developers are focusing on creating experience-driven spaces that integrate shopping, dining, entertainment, and community engagement, rather than just transactional hubs.

What role do Tier-II cities play in the retail leasing market?

Tier-II cities are becoming the next frontier for retail leasing, with rising consumption and improved connectivity attracting mixed-use projects and Grade A malls.

How is the competition in the retail leasing market evolving?

With the expansion of supply, developers are increasingly competing on differentiation, such as introducing market-first brands and curating unique tenant mixes.

What is the outlook for retail leasing in India beyond 2025?

The outlook is positive, with strong fundamentals and a focus on creating engaging, future-ready retail destinations. However, sustaining momentum will require continuous innovation and relevance.