Fashion, Food Leasing Help Keep Delhi-NCR as Ultimate Retail Destination

New Delhi, September 24, 2025: As India’s retail real estate environment is being reshaped dramatically, the National Capital Region (NCR) is solidly at its centre. In addition to its traditional prowess in office markets, Delhi NCR is today India’s leading retail destination, driven by an insatiable consumer demand for fashion and a thriving, dynamic food and beverage (F&B) ecosystem. This growth is driven by sound economic fundamentals, huge infrastructure development, and an influx of global brands wanting a portal into the Indian consumer.

Recent reports, such as by JLL, identify the F&B segment as retail real estate’s growth driver for the entire country, representing 4 million sq. ft. of leasing in top cities over the past 10 quarters. Though Bengaluru dominates in clean F&B volume, Delhi NCR, rivalled closely by Mumbai, completes the top three, driving two-thirds of all national leasing. Its contribution to the overall retail leasing has risen dramatically from 16 per cent in 2023 to 22 per cent in 2025, a clear pointer to its game-changing impact.

But Delhi NCR’s tale is one of diversified strength. 27 global brands entered India alone in 2024, and a large share of them targeted Delhi-NCR’s high-spending, high-aspirations demographic. This is generating huge demand for quality, Grade-A retail space in both established malls and new high streets. Also a central trend characterising NCR’s retail growth is the complementary coexistence of shopping malls and high streets. Instead of being rivals, they serve distinct purposes. High streets became the most preferred option for F&B players, accounting for 54 per cent of sector leasing, valued for their agility, organic traffic, and lively atmosphere. Khan Market, Cyber Hub, and new shopping corridors along the SPR are flourishing.

Concurrently, destination malls within hubs such as Gurugram are still paramount for big fashion flagships and family-entertainment-focused F&B formats. Developers now think deliberately while designing future malls to include up to 25 per cent of space for F&B, turning them into experiential social spaces that transcend the act of shopping.

This retail energy has attracted institutional interest. Since 2018, institutional capital of about $2.5 billion has poured into Indian retail real estate, an endorsement topped by the historic launch of the Nexus Select Trust REIT in 2023. With 18.6 million sq. ft. of fresh mall space added in the last five years, the pipeline remains robust. Importantly, of the 40 million sq. ft. of space to be added by 2027, a whopping 30 per cent of which is expected to be in NCR, further solidifying its stronghold for the next foreseeable future.

“The NCR is riding high on tailwinds in retail, after witnessing gigantic residential growth. It is fueled by a positive global perception, fast economic development, and positive investor sentiments. The demand is directly due to prudent business-friendly policies, a giant push on infrastructural growth like the Dwarka Expressway, and the overall economic success of the region,” says, Arjun Gehlot, Director, Ambience Malls, Gurugram and Vasant Kunj

“India’s increasing global economic clout is drawing record investments into retail real estate. In Gurugram, this surge is particularly visible along key corridors such as Golf Course Extension Road, which has emerged as a hub for premium retail and lifestyle destinations. This expansion is being driven by the rising aspirations of the growing middle class, compelling returns, and fast-paced infrastructure development. The initiatives undertaken by the state government to foster a business-friendly environment are giving a huge push to retail growth, and the future of these spaces looks absolutely exciting and dynamic for all stakeholders,” says Ishaan Singh, Director, AIPL.

Founder Chairman of Reach Group Harinder Singh Hora says, “Gurugram remains NCR’s retail frontrunner, with mixed-use integrated hotspots emerging as the new gold standard. This growth in mixed-use development is creating a fluid live-work-play environment that attracts retailers and consumers throughout the day and night. The Indian retail property market is poised for strong growth, with new malls and prime developments slated for the coming years. Of the millions of square feet of retail development in the pipeline, organized retail malls will consume a significant portion of demand by all categories of retail brands.”