While the Delhi-NCR is gearing up for the next wave of growth in retail, it is becoming evident that the areas will matter to the future of shopping just as much, if not more, than the big streets or the vast malls. Retailers are realizing that closeness to everyday life, together with higher disposable incomes and better connectivity, results in a more profound and long-term consumer engagement. In 2026, it will be very important for retail players to figure out local demands in order to generate substantial growth.
According to the latest data published by JLL, the Indian retail real estate market has been on the upswing through the third quarter of 2025, with total leasing going up to 3.2 million sq. ft. in the top seven cities combined, a strong 65% year-over-year (YoY) increase. The quarter from July to September has been a turning point for India’s retail sector as it has witnessed the influx of high-quality, investment-grade space by developers in the markets that were previously constrained in terms of supply. The leasing activity at the national level was thus dominated by Delhi NCR and Hyderabad, who together accounted for 57% of the total share, showing how the completion of new malls and the vibrancy of high streets are encouraging retailers to expand in these areas. The record-breaking leasing figures point to the successful reopening of key markets owing to new supply, followed by domestic retailers and a variety of categories that include apparel, food and beverage, daily needs, and luxury, which have all broadly expanded.
One of the defining trends of Q3 2025 was the overwhelming presence of domestic retailers, who accounted for 81% of gross leasing during the quarter. The report further states that the indigenous brands leased 2.6 million sq. ft in Q3 alone — a 76% YoY increase from Q3 2024. Meanwhile, foreign brands contributed 19% of leasing activity.
This expansion is indicative of the large-scale manner in which Indian companies in the sectors of apparel, grocery, and food services are consolidating their presence indwelling and high streets. According to the report, the fashion and apparel sector was the leader in leasing with a 35% share, followed by food & beverage with 16%, and daily needs and grocery with 11%. The daily needs category, especially, was experiencing increased demand as retailers were making moves to become the anchor tenants in luxury retail developments.
Pankaj Jain, Founder and Chairman, SPJ Group says, “In 2026, retail growth in Gurugram won’t be defined by the city’s conventional high-profile streets alone; it will be shaped by neighbourhood centric high streets where community and convenience meet spending power. We’ve seen demand shift notably toward high density pockets that combine experiential retail with everyday necessity brands. These micro markets are attractive because they offer visibility, footfall and purchase intent in one compact catchment. Investors and brands are recognizing that the next phase of retail expansion lies in places where residents live, socialize and shop locally, rewriting the playbook for retail strategy in NCR.”
Arjun Gehlot, Director, Ambience Malls-Vasant Kunj and Gurugram says, “NCR’s retail strength has always come from its ability to evolve with consumer lifestyles, and today that evolution is playing out at the micro-market level. Malls in areas like Gurugram and Vasant Kunj have become social hubs anchored by strong F&B, entertainment and lifestyle offerings that reflect how the city lives and unwinds. As residential density increases across newer neighbourhoods and connectivity improves, these retail centres are becoming deeply embedded in daily routines. This integration of living, leisure and retail is driving higher footfalls and longer dwell times, positioning NCR’s micro markets for sustained retail growth in 2026.”
Sakshee Katiyal, Chairperson, Home & Soul, says, “Retail in 2026 must be reimagined as a neighbourhood service, not just a commercial exercise. That’s why our strategy focuses on community driven high streets that reflect local lifestyle needs. Micro markets such as Ghaziabad, Noida and greater noida are showing that when you combine daily conveniences, entertainment and curated experiences, you create places where people choose to spend time and money. We’ve seen leasing interest surge in such pockets even ahead of broader market recovery, underlining that experiential and convenience led retail is the future of NCR.”
The local-level change in the retail scenario is significantly influenced by the development of micro markets across NCR, which are not only reshaping the retail growth but also changing the way the retail business is done. New residential launches, better connectivity, and integrated mixed-use developments are some of the features that Dwarka Expressway, Greater Noida West, Sector 150 Noida, and Golf Course Extension Road have, which is making these corridors ideal for F&B, lifestyle, and experiential retail. Neharpar belt in Faridabad and Ghaziabad are turning into suburban consumption hubs which are attracting brands that are willing to invest in the areas where the customer base is growing.
Ashwani Kumar, Pyramid Infratech, says, “In Gurugram, Dwarka Expressway is emerging as one of the most compelling retail micro markets. Its combination of strong residential growth, rapid infrastructure build-out and catchment diversity makes it a natural choice for brand expansion beyond traditional hubs. Retailers are looking for neighbourhoods with enduring demand, and this corridor delivers that through a mix of young families and upward-mobile professionals. As connectivity improves, so does the ability to draw footfall not just locally but from adjoining catchments, marking a structural shift that will accelerate retail breakout in 2026.”
As a result, 2026 is turning out to be a landmark year for the retail scene in NCR, with companies and the investors of the area choosing to focus their strategies more on the micro-market potential rather than on the old hubs. The energy for leasing is becoming more and more pronounced in the two environments of high streets and malls, which is the effect of the restored trust in neighborhoods that, among other things, have density, good transport links, and increasing buying power.
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