India’s Retail Leasing Reaches Record High of Almost 9 Million Square Feet in 2025

New Delhi, January 29, 2026: Real estate consultancy CBRE South Asia Pvt. Ltd has released a report titled “India Retail Figures H2 2025”, revealing that leasing by retail firms across the top cities touched a peak of ~8.9 million square feet in 2025. At the same time, total supply during the year was recorded at ~4.3 MSF, 268 per cent higher than in 2024. Hyderabad accounted for over half of these supply additions, followed by Mumbai and Delhi-NCR.

During the July to December (H2) 2025 period, about 2.1 MSF of new retail supply became operational. Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE, said that retailers are increasingly experimenting with innovative store formats to boost customer visits, dwell time, and brand engagement. “Leasing momentum is being fuelled by retailers’ emphasis on experiential flagship stores, kiosks, and Gen Z-focused store formats further giving a boost to customer visits, dwell time and brand engagement. The record leasing volumes in 2025 reflect a decisive shift towards quality-led, experience-driven growth,” he added.

Retail space take-up increased significantly in H2 2025, reaching ~5.6 MSF; led by Hyderabad (34 per cent share), Delhi-NCR (20 per cent), and Chennai (16 per cent).

With a ~48 per cent share, Fashion & Apparel players dominated leasing activity during the year. New store openings within this segment remained diverse, encompassing sustainable labels, streetwear / youth-centric, ethnic / fusion wear, athleisure, luxury / designer, and direct-to-consumer (D2C) brands.

AI-driven technologies are further underpinning this transformation, enabling hyper-personalised styling through generative AI, virtual try-ons, social sharing to reduce returns and manage inventory through predictive modelling.

Furthermore, Food & Beverage (F&B) formats accounted for ~12 per cent of total leasing volume during the year, driven by a preference for large-format, experiential units in both premium malls and high street hubs. Jewellery brands followed with an ~8 per cent share. Notably, the tenant mix in this segment is evolving beyond traditional gold, with lab-grown diamond (LGD) brands spearheading store expansions.

Ram Chandnani, Managing Director, Leasing Services, CBRE India, said that during the second half of the year, retailers also capitalised on the country’s consumption uptrend, supported by low inflationary trends, revisions to income tax rates, and the rationalisation of goods and services tax (GST). “While retail leasing activity continues to be dominated by domestic players, international retailers remain active. Among domestic players, D2C brands continue to focus on offline expansion to improve execution and long-term viability,” he added.

According to the report, D2C brands accounted for ~27 per cent of total retail leasing in 2025. Findings of the report also highlighted that entertainment zones at the retail spaces have evolved into high-tech hubs that leverage edutainment, virtual reality (VR), and gamified radio frequency identification (RFID) loyalty systems to command premium pricing and drive repeat visitation.

“For landlords, these centres serve as vital assets for active management, effectively monetising large, windowless ‘dead spaces’ while generating a considerable rental premium for adjacent F&B tenants,” said Magazine, adding that these zones could offer long-term income stability through extended lease terms, successfully blending multi-generational play with robust real estate valuation.