In 2024, retail leasing in India reached approximately 6.4 million square feet across the top eight cities, driven by a positive outlook from retailers, especially in the H2 CY24. The largest contributors were the fashion and apparel sectors, particularly mid-range, value fashion, and athleisure, accounting for 37% of the space leased. Other sectors like homeware, department stores, and food and beverage also saw significant activity. The direct-to-consumer (D2C) sector grew by 7%, with fashion and apparel leading. Bengaluru led the space absorption, followed by Hyderabad and Delhi-National Capital Region (NCR), which accounted for 58% of the leasing in H2 CY24. Additionally, the retail supply for the year stood at 1.2 million square feet, with more investment-grade assets expected in tier-I cities in 2025.
India's retail market is set for significant growth in 2025, driven by a strong leasing pipeline and sustained demand from the fashion, athleisure, and jewellery segments. Retail leasing is expected to open five-six million square feet of Grade A mall space in cities such as Delhi-NCR, Bengaluru, Hyderabad, and Mumbai. The landscape is evolving as retail spaces transform into destinations offering a mix of shopping, dining, and entertainment, with brands increasingly adopting innovative approaches. The entry of global brands like Carrefour, AMIRI, Foot Locker, and luxury retailers like Maison Margiela further boosts the market's appeal. India remains a key market for foreign retailers, with strong partnerships and new stores expected to launch in 2025.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.