India Market Monitor Retail - Q4 2025

India’s retail leasing activity reached a historic high of ~8.9 million sq. ft. in 2025, powered by an influx of quality supply amidst sustained expansionary sentiment among domestic and global retailers. During the October-December (Q4) 2025 period, more than 4 million sq. ft. of retail space was leased, while over 2 million sq. ft. of supply became operational. Notably, Hyderabad, Delhi-NCR, and Chennai accounted for over three-fourths of total demand during the quarter.

Throughout the year, leasing momentum was primarily driven by a strategic shift towards experiential flagships, Gen Z-centric formats, and the physical expansion of direct-to-consumer (D2C) brands. Retailers also capitalised on the country’s consumption uptrend, supported by low inflationary trends, revisions to income tax rates and the rationalisation of goods and services tax (GST).

As retailers prioritise strategic expansion, the demand for high-quality space remains robust, further bolstered by a healthy supply pipeline slated for delivery in the coming months.

While fashion and apparel, F&B, and entertainment are likely to continue serving as the sector’s primary strategic anchors, these segments are simultaneously undergoing a premiumisation shift. This evolution is expected to be further supported by an expansion beyond traditional mall formats into high-street corridors, mixed-use developments, support retail in business parks, outlet centres, and transit hubs, to optimise market penetration and capture evolving consumer preferences.

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