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A CBRE South Asia report highlights robust retail leasing in India, with 6.4 million sq. ft. leased in 2024 across top cities. Bengaluru, Hyderabad, and Delhi-NCR led absorption, while fashion, apparel, and D2C brands dominated demand. Foreign brands like Carrefour and AMIRI entered through local partnerships, boosting growth. The retail supply pipeline, including Grade A malls, is set to expand in 2025, driven by demand for mid-range fashion, athleisure, and luxury. Experiential retail, mixed-use developments, and quick-commerce platforms are gaining traction. The sector's growth depends on adapting to consumer expectations, market trends, and technology in the evolving retail landscape.
According to a report by CBRE South Asia Pvt. Ltd, India's retail leasing market remained robust in 2024, with total leasing activity across the top eight cities reaching approximately 6.4 million square feet. This growth reflected expansionary sentiments among retailers. The report highlighted a strong supply pipeline anticipated for 2025, with investment-grade assets set to become operational in tier-I cities, including Bengaluru, Hyderabad, Delhi-NCR, and Mumbai. Retail supply in 2024 amounted to 1.2 million square feet. Advertisement
The fashion and apparel sector witnessed significant demand, particularly in mid-range, value fashion, and athleisure categories, which accounted for 37% of retail space take-up during the second half of the year. Other major contributors to leasing activity included homeware and department stores (13%) and the food and beverage sector (12%). Additionally, the direct-to-consumer (D2C) sector showed robust growth, contributing 7% to overall leasing activity and occupying around 0.6 million square feet. Notably, fashion and apparel, along with homeware and department stores, represented over 70% of the D2C leasing activity.
Tier-I cities accounted for approximately 3.2 million square feet of retail space absorption in the second half of 2024, matching the leasing levels recorded during the previous six-month period. Bengaluru led the market in terms of space absorption, followed by Hyderabad and Delhi-NCR, which collectively contributed 58% to the total leasing activity. The addition of Grade A mall space in 2024 was approximately 0.7 million square feet, with further completions deferred to 2025.
India's retail landscape continued to attract foreign brands in 2024, with several making significant market entries through strategic partnerships with local players. For instance, French retail chain Carrefour re-entered the Indian market through a partnership with Dubai's Apparel Group, with stores expected to open in 2025. New entrants in the fashion and apparel sector included U.S.-based AMIRI, Italian footwear brand Aquazzura, and U.S. retailer Foot Locker. The luxury segment also welcomed brands like Maison Margiela, TimeVallee, and Zen Diamonds, while the food and beverage sector saw the entry of Kamei in NCR and Brunch & Cake in Mumbai.
Looking ahead to 2025, India's retail leasing activity is expected to remain strong, supported by balanced primary and secondary transactions. Demand is likely to be driven by segments such as mid-range fashion, value fashion, athleisure, and jewellery. The supply of retail spaces is set to rebound, with 5-6 million square feet of Grade A malls anticipated to become operational in major tier-I cities.
Experiential retail is expected to gain prominence, with retailers focusing on customer engagement and emotional connections. Mixed-use developments that integrate office, retail, and residential spaces are predicted to become increasingly popular. The D2C sector is poised for continued growth, with many brands exploring offline retail options to enhance their omnichannel presence. Additionally, quick-commerce platforms are anticipated to see greater activity, supported by the introduction of new brands, diversified product categories, and expanded service areas. Ultimately, the ability of brands to adapt to evolving consumer expectations, technological advancements, and market conditions will determine their success in India's dynamic retail environment.
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