Fashion and apparel drive retail leasing boom in Delhi-NCR - CBRE report

Leasing activity in Delhi-NCR's retail real estate market is bouncing back, showing a strong recovery in the first half of 2025. According to property consultant CBRE, the demand for retail spaces in malls and high streets increased by 25 percent from January to June, a direct result of both new supply and growing interest from retailers. This recovery follows a slow period in 2024, when the total area leased fell significantly.

The surge in leasing is evident in the numbers, with approximately 5 lakh sq. ft. leased in the first half of 2025, a notable increase from the 4 lakh sq. ft. leased during the same period in 2024. This rebound was greatly helped by the addition of about 3 lakh sq. ft. of new retail space, as no new malls were completed in the first half of the previous year.

The demand for these spaces is primarily driven by the fashion and apparel sector, which accounted for 35 percent of all leases. Homeware and departmental stores were also major players, taking up roughly 30 percent of the new space. The remaining demand came from food & beverage outlets and other lifestyle retailers. These leasing figures reflect activity in top-tier malls, high streets, and standalone developments across the Delhi-NCR region.

Developers are optimistic about this growth, emphasising that modern retail is focused on creating experiences, not just transactions. Industry leaders note that a rise in consumer footfall and spending is encouraging retailers to expand into both prime and emerging markets. With vacancy rates in top-tier spaces in Gurugram at less than 3 percent, the market remains strong. Experts predict that Delhi-NCR's retail market will continue to grow steadily throughout 2025, supported by a healthy pipeline of new malls, strong consumer spending, and sustained interest from both global and domestic retailers.