Retail Leasing Outlook: Will Momentum Continue?

Retail leasing in India has had a remarkable run through the first half of 2025, with brands across categories expanding footprints and developers reporting healthy absorption of new spaces.

The recovery that began post-pandemic has matured into a phase of steady, experience-led growth, where malls and high-street formats are no longer just transactional hubs but vibrant destinations.

In Delhi-NCR, demand for retail spaces in malls and high streets rose 25 percent between January and June, reflecting both fresh supply and growing appetite from retailers, as per CBRE. The leasing touched around 5 lakh sq ft in the January–June period, compared with 4 lakh sq ft in the same period last year. 

Also read: Delhi NCR Commercial Real Estate is growing at the second-fastest rate in India

This comes after a slowdown in 2024, when the total number of areas on lease fell to 10 lakh sq ft from 14 lakh sq ft in 2023.

The question now is whether this momentum can sustain itself as we move into the second half of 2025 and beyond into 2026, especially against the backdrop of evolving consumer habits, economic signals, and the changing expectations of both brands and shoppers. What’s equally noteworthy is how Tier-II cities are beginning to catch up, with developers betting on rising consumption potential outside traditional metros.

Mixed-use projects and Grade A malls remain the preferred formats, attracting both domestic and international brands eager to anchor themselves in spaces that offer scale, quality, and integrated lifestyle experiences.

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Arjun Gehlot, Director, Ambience Malls, says, “Rising disposable incomes, strong metro connectivity, and transformative infrastructure upgrades have reshaped NCR’s retail landscape. Cities like Gurugram now rival Delhi as magnets for top-tier Indian and global brands. At Ambience Malls, we’re responding to this shift by crafting immersive, multi-sensory environments that go beyond traditional shopping. Our offerings include not only global luxury labels but also celebrated Indian designers and exciting new dining options. With a strong pipeline of upcoming openings and increasing leasing queries, we are confident that the leasing momentum will continue, as brands increasingly seek to be part of these experiential destinations where families love to spend time together. We remain committed to delivering spaces that set the benchmark for retail excellence.”

Also read: 70% of Retail Leasing is acquired by Mumbai, Delhi NCR & Bengaluru, says JLL

Besides, strong economic fundamentals are underpinning the current retail leasing momentum. Rising disposable incomes and a steady GDP trajectory have given consumers the confidence to spend, while inflation remains relatively stable, supporting sustainable demand. This is particularly visible in discretionary categories, with luxury brands, F&B outlets, and entertainment destinations witnessing heightened interest.

Mr. Ravinder Choudhary, Vice President, Vegas Mall, says, "Delhi‑NCR’s mall culture has evolved significantly, and the changing footfall patterns and heightened brand interest reflect this transformation. Today, consumers are drawn to experiences that are engaging, immersive, and memorable. At Vegas, we focus on curating a premium mix of tenants alongside experiential zones designed to resonate with the tastes and expectations of urban shoppers. This approach ensures that every visit feels fresh and exciting. The strong leasing momentum we are witnessing reinforces that malls are not just retail spaces; they are becoming the heartbeat of Delhi’s urban lifestyle and the future of retail in the city."

Also Read: Reimagining Urban life with Mixed-Use Brilliance

At the same time, government-led infrastructure initiatives—ranging from expanded metro connectivity and airport upgrades to improved highways—are enhancing accessibility to retail hubs, making them more attractive for both consumers and brands. Together, these factors are creating an environment where retail leasing continues to thrive.

Prakash Mehta, Chairman & Managing Director, Ocus Group said, “Retail leasing in India is witnessing a defining shift where consumer experiences dictate the momentum. We are curating a balanced ecosystem of fashion, F&B, and entertainment to meet evolving shopper expectations. Brands today seek destinations that guarantee both high visibility and long-term engagement, and we see this as an opportunity to build a model where every visit feels purposeful and rewarding.”

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Ajendra Singh, VP, Sales and Marketing, Spectrum@Metro, says, "The leasing activity we are experiencing is not just about space absorption—it reflects the larger transformation of retail into lifestyle-driven destinations. At Spectrum, our vision is to create a hub where brands thrive on scale, accessibility, and differentiated experiences. The strong pipeline of interest from both domestic and international players assures us that this momentum is here to stay, as retailers look for platforms that connect directly with the aspirations of urban consumers."

Thus, leasing momentum is expected to remain steady, with brands increasingly gravitating toward mixed-use developments and Grade A malls that seamlessly integrate shopping, dining, entertainment, and lifestyle experiences.