India Market Monitor Q2 2025 - Retail

Supply addition in India's retail sector witnessed a significant boost in the first half of 2025 as approximately 2.2 million sq. ft. of new retail space became operational. Fashion and apparel brands continued to lead space take-up, accounting for a ~37% share of the overall leasing during Q2 2025. Shopping malls continued to refine their tenant mix to enhance the visitor experience, integrating a wider array of entertainment, dining, and innovative retail formats.

With several investment-grade malls nearing completion, the market anticipates a significant expansion of prime leasing opportunities for both international and domestic retailers.

Demand will continue to be led by fashion & apparel players, encompassing sustainable labels, streetwear / youth-centric brands, ethnic / fusion wear, athleisure, luxury / designer brands, and D2C brands.

In fact, D2C brands are expected to secure space in major malls, with developers actively integrating them into their tenant mix due to their growing online popularity. Jewellery brands are also expected to expand their footprint. 

The demand for immersive experiences is also likely to drive a boom in family entertainment centres (FECs), which are now expanding beyond malls into mixed-use developments (consisting of commercial and residential, among other categories) and standalone locations.

To delve deeper into our analysis of the real estate retail landscape, please click on the download button.