Delhi-NCR’s retail real estate market witnessed significant recovery in the first half of 2025, with leasing activity rising sharply compared to the same period last year. According to property consultant CBRE, demand for retail spaces in malls and high streets increased by 25 per cent between January and June 2025, driven by fresh supply and stronger retailer appetite.
The leasing volume reached around 5 lakh sq ft in the first half of 2025, compared with 4 lakh sq ft during the same period in 2024. This marks a notable rebound after the slowdown observed in 2024, when total leased areas fell to 10 lakh sq ft from 14 lakh sq ft in 2023. The recovery was aided by approximately 3 lakh sq ft of new retail space entering the market in early 2025, as no fresh mall supply was reported in the previous year.
Fashion and apparel brands emerged as key contributors, accounting for 35 per cent of leasing activity in H1 2025. Homeware and departmental stores together absorbed about 30 per cent of the new retail space. The remaining share was occupied by food and beverage operators and other lifestyle retailers. These leasing figures cover investment-grade malls, high streets, and standalone retail developments across Delhi-NCR, highlighting growing interest from both domestic and international players.
Developers and leasing experts note that retail expansion is increasingly experience-driven rather than purely transactional. Industry leaders explained that retailers now aim to create vibrant destinations that engage communities and enhance daily lifestyles. Rising consumer footfalls, robust spending patterns, and preference for experience-led destinations have encouraged retailers to strengthen their presence in both prime and emerging markets.
Vacancy levels in Grade A retail spaces, especially in Gurugram, are reportedly below three per cent, indicating tight supply conditions. This has led to competitive leasing, particularly for prime locations and well-designed retail hubs.
Experts believe that Delhi-NCR’s retail market is poised for sustained growth in 2025. New mall developments, rising consumer spending, and continued interest from fashion, homeware, and lifestyle brands are expected to maintain leasing momentum. Developers anticipate that prime city locations and upcoming retail hubs will benefit from both end-user footfall and investment-driven leasing.
The trend also reflects a broader shift in the retail real estate landscape, where shopping experiences are becoming central to brand strategy. Retailers are increasingly focused on attracting and retaining consumers through curated environments, interactive zones, and lifestyle-oriented services.
With leasing activity on the rise and vacancies at historic lows, the first half of 2025 has set a positive tone for the retail sector in Delhi-NCR. Industry stakeholders anticipate that demand for high-quality, experience-driven retail spaces will continue to expand over the remainder of the year, supported by favorable consumer behavior and ongoing infrastructure improvements.
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