India's luxury retail takes a quantum leap

India's luxury retail sector has seen unprecedented growth, with leasing activity surging by 90% in Q1 2025 compared to the previous year. This surge is driven by the aggressive expansion of luxury and bridge-to-luxury brands across major cities. Leasing by luxury brands reached 1,80,000 square feet in Q1 2025, with global and domestic players striving to capture a growing share of India's premium retail market. Consumer demographics are evolving, prompting luxury brands to recalibrate their strategies and expand their physical footprint to attract a broader audience. While legacy players remain focused on metro markets, newer brands continue to view India as a high-potential market, with the country projected to remain among the top five luxury markets in the Asia-Pacific region. 

Several international high-end brands have entered India, including German clockmaker Qlocktwo in Bengaluru, French children’s fashion brand Jacadi Paris, and women’s fashion label Maje in Mumbai. Spanish fast-fashion brand Bershka and Swiss premium lifestyle brand Nespresso have also debuted in Delhi. This growing demand drives retail rentals, with sales enabling landlords to increase rents in prominent malls. The expansion is also evident in the bridge-to-luxury segment, particularly in beauty and accessories, with brands expanding into new malls. With the increasing number of high-income households in India, expected to double from 15 million in FY23 to 30 million by 2030, India’s luxury market is predicted to reach Rs. 8,500-9,000 crore (US$ 1.01–1.06 billion)by 2030, a 3.5-fold increase. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.