India’s retail real estate sector has witnessed remarkable resilience and growth in 2024, despite challenges posed by limited supply. According to the latest report, ‘India Retail Figure H2 2024’, by CBRE South Asia Pvt. Ltd., the country’s retail leasing activity touched an impressive 6.4 million sq. ft. across the top eight cities. With a strong supply pipeline in 2025, the stage is set for significant developments in India’s retail landscape.
Key Highlights of Retail Leasing in 2024
Robust Leasing Activity:
Retail leasing remained buoyant, with approximately 6.4 million sq. ft. absorbed across major cities in India. Bengaluru, Hyderabad, and Delhi-NCR emerged as the top contributors, collectively accounting for nearly 58% of the total space take-up in the second half of 2024.
Sectoral Drivers:
- The fashion and apparel sector dominated retail space demand, contributing 37% of the total leasing activity in H2 2024. The mid-range, value fashion, and athleisure segments drove this growth.
- Homeware and department stores accounted for 13% of the leasing activity, followed closely by the food and beverage sector at 12%.
- The direct-to-consumer (D2C) sector showed strong growth, taking up 0.6 million sq. ft. (7% of total leasing).
Limited Supply Addition:
Due to project timeline adjustments, only 0.7 million sq. ft. of Grade A mall space was added in the latter half of 2024, bringing the annual retail supply to 1.2 million sq. ft.
Retailer Expansion and Brand Entries:
India continued to attract global brands in 2024. Key entries included:
- Fashion and Apparel: U.S.-based AMIRI, Italian footwear brand Aquazzura, and Foot Locker in NCR.
- Luxury Segment: Charles Tyrwhitt, Maison Margiela, TimeVallée, and Zen Diamonds.
- Food & Beverage: Brands like Kaméi, Brunch & Cake, and EL&N London made notable debuts.
Trends and Insights for 2025
With strong demand and a promising supply pipeline, 2025 is poised to be a transformative year for India’s retail sector.
Supply Rebound Expected
The addition of 5-6 million sq. ft. of Grade A malls is anticipated in tier-I cities such as Delhi-NCR, Hyderabad, Mumbai, and Bengaluru. These new developments are expected to cater to the growing demand for investment-grade retail spaces.
Strategic Alliances Driving Market Expansion
Foreign brands are increasingly entering India through partnerships with domestic retail giants. This trend is expected to strengthen, particularly in segments like fashion, luxury, and personal care.
Experiential Retail Gaining Traction
Retail spaces are evolving into destinations for holistic experiences, combining shopping, dining, and entertainment. Mixed-use developments that integrate retail, office, and residential spaces are gaining popularity, offering emotional engagement and storytelling to consumers.
The D2C Boom
- The direct-to-consumer segment will continue its upward trajectory, driven by:
- Rising e-commerce adoption.
- Expanding millennial and Gen Z consumer bases.
- Increased offline presence of popular D2C brands to create omnichannel experiences.
Quick-Commerce Revolution
The quick-commerce sector is set to flourish, offering instant consumer gratification through faster deliveries, broader product categories, and expanded service areas.
Expert Perspective
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, highlighted the sector’s promising outlook:
“India’s retail landscape is set for significant growth in 2025, supported by strong demand from mid-range fashion, value fashion, athleisure, and jewellery segments. With innovative strategies such as social media engagement, advanced inventory management, and quick commerce, the retail sector is poised for dynamic transformation.”
The Road Ahead
As India’s retail sector continues to adapt to evolving consumer expectations and technological advancements, the emphasis on creating engaging and immersive retail experiences will be key. With a robust supply pipeline and strong demand across categories, 2025 is set to usher in a new era of retail growth and innovation.
