Retail leasing in India reached approximately 6.4 million sq. ft. in 2024, driven by sustained expansionary demand from retailers despite limited new supply, according to a report by CBRE South Asia Pvt. Ltd. The findings, published in the India Retail Figures H2 2024, highlight a promising outlook for 2025 with an anticipated supply rebound across major cities.
Fashion and apparel dominated retail space absorption in 2024, accounting for 37% of leasing activity, followed by homeware and department stores (13%) and food and beverage (12%). The direct-to-consumer (D2C) sector continued its upward trajectory, contributing 7% to total retail space take-up.
CBRE Chairman & CEO Anshuman Magazine said, “India’s retail sector is poised for significant growth in 2025, with strong leasing momentum and an expansive supply pipeline. Retail spaces are increasingly evolving into experiential hubs blending shopping, dining, and entertainment, enhancing consumer engagement.”
Bengaluru led the market with retail leasing of 0.7 million sq. ft. in H2 2024, while Hyderabad and Delhi-NCR followed closely with 0.6 million sq. ft. each. Key demand drivers included mid-range fashion, entertainment, and food and beverage. Mumbai witnessed 0.5 million sq. ft. of retail leasing, with strong uptake in homeware and department stores, entertainment, and dining sectors.
Despite supply constraints in 2024, 0.7 million sq. ft. of Grade A mall space was added, with completions deferred to 2025. Cities such as Delhi-NCR, Mumbai, Hyderabad, and Bengaluru are expected to lead supply growth this year, with 5-6 million sq. ft. of new retail spaces set to open.
Foreign brands also strengthened their presence in India, leveraging strategic local partnerships. Notable entries in 2024 included Carrefour’s re-entry in collaboration with Dubai’s Apparel Group, U.S.-based AMIRI, and Italian brand Aquazzura. Luxury brands such as Maison Margiela and Zen Diamonds marked their debuts in Mumbai, while NCR saw the launch of Foot Locker and Kaméi.
Looking ahead, mid-range fashion, athleisure, and jewellery will continue to drive leasing, supported by technological advancements and omnichannel retail strategies. Quick-commerce platforms, fueled by evolving consumer demands, are set to dominate, with diversification and geographic expansion playing pivotal roles.
