India Retail Figures H2 2025

India’s retail real estate market achieved a record ~8.9 million sq. ft. of absorption in 2025, bolstered by ~5.6 million sq. ft. of space take-up during the July-December (H2) period. This demand was met by over 4 million sq. ft. of new supply during the year, nearly half of which became operational in tier-I cities during H2 2025.

Leasing momentum was fuelled by retailers' emphasis on experiential flagship stores, kiosks, and Gen Z-focused store formats, which further gave a boost to customer visits, dwell time, and brand engagement. The record leasing volumes in 2025 reflected a decisive shift towards quality-led and experience-driven growth.

Key market trends highlighted in CBRE Research’s India Retail Figures H2 2025 report include:

• Hyderabad led retail space take-up in H2 2025, followed by Delhi-NCR and Chennai—these three cities collectively accounted for ~70% of total leasing activity.
• Significant supply influx was witnessed during the second half of the year as ~2.1 million sq. ft. of investment-grade mall supply became operational. These include Lake Shore Mall Y Junction (~1.6 million sq. ft.) in Hyderabad and UnityOne Elegante (~0.5 million sq. ft.) in Delhi-NCR.
• Fashion and apparel players remained the primary demand drivers, accounting for a ~48% share in H2 2025. Food & beverage (F&B) (~13% share) and entertainment (~8% share) categories also fuelled retail space absorption during this period.
• Apart from malls, F&B operators also expanded their footprint across high streets as brands looked to capitalise on 24/7 visibility and the opportunity to establish standalone identities. In addition to organised gold and fine jewellery outlets, lab-grown diamond (LGD) brands continued to redefine the jewellery segment’s presence in premium retail spaces with their aggressive store rollouts.
• Accounting for ~27% of total leasing in 2025, direct-to-consumer (D2C) brands emerged as a key driver of retail leasing across major metros, with tier-I cities serving as the essential proving grounds for their omnichannel maturity. The shift towards D2C brands, driven by digitally native demand, evolved from narrative-driven growth into a strategic focus on execution and long-term viability.

The key retail trends outlined below are expected to shape the market in 2026:

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