India’s Retail Real Estate Shifts Beyond Shopping With Rise of Experience-Led Destinations
New Delhi, September 29, 2026: India’s retail real estate sector is entering a new growth phase driven by strong leasing momentum, expanding consumption, and a shift toward experience-led destinations. Retailers leased roughly 3.9 million sq. ft. across top markets in H1 2026—a 20% year-on-year increase—with Delhi-NCR, Chennai, and Mumbai accounting for nearly 66% of the activity, according to CBRE data.
The category mix within physical retail is evolving to accommodate leisure, dining, and social experiences. Figures from JLL show that food and beverage (F&B) accounted for 18% of retail leasing across India’s top seven cities in H1 2026, while entertainment space take-up rose 41.5% year-on-year to contribute 16% of total leasing.
Rising incomes, urbanization, and changing consumer lifestyles are also expanding organized retail into emerging tier-II and tier-III markets. Industry executives note that integrating commerce, dining, and entertainment allows retail centers to capture more varied daily consumption patterns.\
Highlighting regional trends, Mrinaal Mittal, Managing Director of Homeland Group – CP67, said, “Experience-led retail is influencing consumption and footfall patterns across emerging markets, where consumers are increasingly seeking a wider mix of retail, leisure, dining and entertainment. By bringing these categories together, destinations can accommodate more frequent and varied consumption occasions, allowing physical retail to become more closely woven into everyday lifestyles. In Mohali and the wider Chandigarh Tricity, this evolution indicates a consumer base that is becoming increasingly discerning about the quality, convenience and variety of experiences available within its catchment.”
As retail footprints expand beyond major metros, market dynamics are requiring developers to tailor formats around local demographics and accessibility.
Addressing consumer expectations, Nandini Taneja, CEO of Bhumika Enterprises, said, “Today, the expansion of organised retail into new catchments is being accompanied by a significant evolution in consumer demand. Rising incomes, urbanisation and greater exposure to contemporary retail are creating consumers with increasingly diverse expectations. Consequently, developers are paying closer attention to demographics, spending patterns, lifestyle preferences, and local aspirations as they shape retail environments. This approach allows convenience, variety and experience to come together in ways that resonate with individual markets.”
Furthermore, connectivity is proving critical for transit-linked developments, mixed-use projects, and high streets. Ajendra Singh, Vice President–Sales and Marketing of Spectrum Metro, noted that well-connected retail corridors integrate shopping, dining, and services into everyday urban movement, particularly across Noida and the broader Delhi-NCR region.
