India Market Monitor Q1 2025 – Retail

A significant upswing was witnessed in India’s retail supply addition as ~2.2 million sq. ft. became operational in Q1 2025. The fashion and apparel category continued to dominate the leasing activity, accounting for a ~27% share of the overall space take-up during the quarter, followed by homeware and department stores. Notably, shopping malls continued to refine their tenant mix by offering diverse entertainment, dining, and dynamic retail experiences.

The anticipated completion of several investment-grade malls is likely to expand leasing opportunities for international and domestic retailers alike. Mid-range fashion brands, especially those operated by international players, would continue to exhibit strong demand for larger format stores in prime locations.

Fuelled by investment from major retail conglomerates, Indian designer stores, especially those focused on the wedding industry, are poised for continued strategic expansion. Similarly, major jewellery brands are expected to further extend their market reach. Beyond the established categories, emerging segments such as entertainment and direct-to-consumer (D2C) brands expanding into physical retail are also expected to increase their share of retail leasing.

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