The real estate leasing by retail firms in India’s major cities reached a new high of approximately 8.9 million sq. ft. in 2025, with a total supply of about 4.3 million sq. ft., marking a significant 268% increase from 2024, as per a report. Hyderabad saw the highest new supply additions, followed by Mumbai and Delhi-NCR.
Fashion and apparel sectors dominated the leasing activity, holding a 48% share, with various new store openings including sustainable labels, streetwear, ethnic and fusion wear, athleisure, luxury or designer, and direct-to-consumer brands, the report highlighted.
According to the report from CBRE South Asia, around 2.1 million sq. ft. of new retail supply became operational in the latter half of CY2025, with AI-driven technologies facilitating hyper-personalized styling, virtual try-ons, and social sharing to enhance customer experiences and manage inventory effectively.
Food and beverage formats accounted for about 12% of the leasing, driven by a preference for large experiential units in premium malls and high-street hubs. Jewellery brands, particularly lab-grown diamond retailers, expanded their presence, holding an 8% share in the market.
Retail take-up notably surged in the second half of 2025 to approximately 5.6 million sq. ft., with Hyderabad, Delhi-NCR, and Chennai leading the way, the report revealed.
Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa at CBRE, emphasized that the leasing momentum was driven by retailers’ focus on experiential flagship stores, kiosks, and Gen Z-focused store formats, enhancing customer visits, dwell time, and brand engagement. He noted that the record leasing volumes in 2025 signify a shift towards quality-led, experience-driven growth in the retail sector.
Ram Chandnani, Managing Director, Leasing Services, CBRE India, mentioned that while domestic players dominate retail leasing, international retailers are also active, with direct-to-consumer brands concentrating on offline expansion. He highlighted that retailers leveraged the country’s consumption trend, supported by low inflation, revised income tax rates, and GST rationalization.
