India’s retail real estate scene got off to a powerful start in 2025, with new store space doubling compared to the same time last year—adding up to around 2.2 million square feet, as per a recent CBRE report.
This upswing was largely powered by strong leasing momentum, especially from fashion and apparel brands, which claimed the biggest slice of the pie at 27%. Close behind were the entertainment and homeware categories, both showing steady traction.
Three cities—Mumbai, Hyderabad, and Delhi-NCR—drove most of the action, accounting for nearly two-thirds of the total space absorbed. Mumbai alone was responsible for over half of the new additions (58%), while Hyderabad and Delhi-NCR followed with 28% and 13%, respectively. The numbers suggest retailers are betting big on high-footfall locations, and there’s a clear tilt toward malls that offer more than just shopping—a complete experience.
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When it comes to who’s signing the leases, homegrown retailers continue to lead, making up 81% of the activity. International brands, however, aren’t far behind, especially those from the U.S. and the EMEA region, which have grown their presence to 11% and 22%, respectively.
Fashion continues to be the big driver, particularly as mid-tier and global brands look for larger stores in busy hubs. Homeware and department store brands are also ramping up, while D2C and entertainment players are starting to find their footing in brick-and-mortar formats.
Rentals told their own story. Several high-demand spots—like Delhi’s South Extension, Bengaluru’s 100 Feet Road in Indiranagar, and prime areas in South Mumbai—saw rents go up anywhere between 1% and 7%, pointing to surging demand and limited supply in premium areas.
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Looking forward, the outlook stays strong. With new high-quality malls nearing completion and both domestic and global brands actively scouting for bigger, better spaces, India’s retail real estate market seems set to keep the momentum going.
