Retail Leasing Surges 25% in Delhi-NCR as Fashion and Home Brands Expand
Retail leasing in Delhi-NCR has seen a significant 25% increase in the first half of 2025, driven by a surge in demand from fashion, home, and lifestyle brands. This growth follows a slowdown in 2024 and is expected to continue with new mall openings and rising consumer spending.
Retail LeasingDelhincrFashion BrandsHome BrandsReal EstateReal Estate NewsSep 09, 2025
The rebound follows a slowdown in 2024, when total leased space fell to 10 lakh sq. ft. from 14 lakh sq. ft. in 2023. Approximately three lakh sq. ft. of new retail space entered the market in H1 2025, compared with no new supply in the corresponding period last year. Fashion and apparel brands accounted for 35% of leasing, homeware and departmental stores 30%, with the remainder taken up by food & beverage players and lifestyle retailers.
Industry leaders noted that retail leasing is increasingly focused on creating experiential destinations rather than simple transactions. Senior Vice President, Leasing at Elan Group, Mr. Ankit Sharma, said retail is now about connecting communities and elevating everyday life. Assistant Vice-President and Head Leasing at Trehan Iris, Mr. Gaurav Bansal, highlighted that rising footfalls and experience-led consumer preferences are driving expansion across prime and emerging markets. Chief Operating Officer at Pioneer Urban, Mr. Rakesh Bohra, added that Gurugram’s Grade A retail vacancies remain below 3%.
Experts expect Delhi-NCR’s retail market to maintain steady growth in 2025, buoyed by new malls, rising consumer spending, and strong interest from domestic and international retailers. This trend underscores the region's potential as a key retail hub, attracting a diverse range of brands and enhancing the shopping experience for consumers.
Frequently Asked Questions
What is the current state of retail leasing in Delhi-NCR?
Retail leasing in Delhi-NCR has seen a 25% increase in the first half of 2025, with leasing activity touching around five lakh sq. ft., compared to four lakh sq. ft. in the same period last year.
Which sectors are driving the increase in retail leasing?
Fashion and apparel brands account for 35% of leasing, while homeware and departmental stores make up 30%. The remaining demand is from food & beverage players and lifestyle retailers.
How is the retail market in Gurugram performing?
Gurugram’s Grade A retail vacancies remain below 3%, indicating strong demand and a healthy market.
What are the factors driving the growth in retail leasing?
The growth is driven by new mall openings, rising consumer spending, and strong interest from both domestic and international retailers. Additionally, the focus on experiential retail is attracting more footfalls.
What is the outlook for the retail market in Delhi-NCR for the rest of 2025?
Experts expect the retail market in Delhi-NCR to maintain steady growth in 2025, with new malls, increased consumer spending, and strong retailer interest continuing to drive the market forward.
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