Retail Sector Drives Demand for Commercial Properties in Delhi NCR

New Delhi, January 26, 2025: The retail real estate in Delhi-NCR has yet again made headlines with its remarkable growth, driven by the region’s strategic location, robust infrastructure, and growing consumer base. As a hub for global and domestic brands, it offers a thriving ecosystem for retail businesses, supported by increasing urbanization and rising disposable incomes. The region’s diverse demographics, coupled with strong developer confidence, significant infrastructure developments, and shifting consumer trends have made it a preferred destination for malls, high streets, and mixed-use developments.

CBRE’s India Retail Figures H1 2024 reported that retail leasing in India increased by 7 per cent compared to the previous year, totalling 3.1 million square feet, with Tier I cities such as Delhi-NCR, Bengaluru, and Chennai leading this expansion. This achievement solidified the region’s status as India’s premier retail investment destination.

Within NCR, Noida emerged as one of the key drivers, due to its major infrastructure upgrades, like the upcoming Noida International Airport in Jewar, which is expected to enhance connectivity and spur commercial space demand. Other micro-markets like the Noida-Greater Noida Expressway, Yamuna Expressway, and more are already witnessing an influx of global businesses establishing their presence along the corridors.

With growing urbanization and higher disposable incomes, consumer spending has surged, especially on lifestyle and luxury products. This shift has created a robust demand for premium retail spaces, encouraging developers to focus on high-quality commercial projects.

Sanchit Bhutani, Managing Director, Group 108, “The surging retail sector in the Delhi-NCR region reflects the area’s dynamic consumer landscape. The burgeoning development along the Noida-Greater Noida Expressway is drawing renowned international brands to establish their presence along this corridor, thereby stimulating the demand for high-end retail spaces. We perceive this as an opportune moment to develop projects featuring premium amenities with focus on strong retail mix. Our aim is to provide spaces that seamlessly blend convenience and modern shopping experience, thereby attracting a wide range of prestigious brands.”

Harsh Gupta, CEO, Sundream Group, says: “Grade-A retail spaces in Noida are reshaping the region’s commercial landscape, catering to the demands of modern consumers and businesses. Iconic retail developments have become central attractions, offering a blend of shopping, dining, and entertainment experiences. The shift towards experience-driven shopping has driven us to design projects with advanced facilities and leverage strategic locations. Hence, we aim to deliver premium retail spaces that drive footfall and long-term brand success.”

Moreover, the report further highlights how vacancy rates in premium malls across the region fell to 8.3 per cent in 2024, down from 9 per cent in 2023, reflecting strong demand for quality retail spaces. In addition, the rise of organized retail formats, including malls and high streets, has transformed Delhi NCR into a retail hotspot, catering to the evolving preferences of consumers and driving demand for retail spaces.

Ajendra Singh, Vice-President, Sales and Marketing, at Spectrum@Metro, says, “Malls are increasingly evolving into immersive destinations that offer much more than just shopping. At Spectrum@Metro, we are focused on enhancing the retail experience by creating spaces that encourage visitors to stay longer and engage more deeply. This includes integrating entertainment zones, family-friendly areas, and curated events that cater to diverse consumer needs. From fine dining options to recreational activities, we look forward to continue providing a holistic experience that blends shopping with leisure.”

The retail sector in Delhi NCR is thus set to sustain growth, fuelled by strategic infrastructure developments and shifting consumer preferences. As the region continues to attract global brands and investors, its retail real estate market is set to remain a driving force for commercial property demand in the years ahead.