Mumbai, Jan 28 The real estate leasing by retail firms across India’s top cities touched a record high of around 8.9 million sq. ft. in 2025 while total supply was about 4.3 million sq. ft., 268 per cent higher than in 2024, a report said on Wednesday.
The report from CBRE South Asia said that Hyderabad accounted for over half of the new supply additions, followed by Mumbai and Delhi‑NCR.
Fashion and apparel dominated leasing with around 48 per cent share. New store openings within this segment remained diverse, encompassing sustainable labels, streetwear, ethnic and fusion wear, athleisure, luxury or designer and direct‑to‑consumer brands, the report said.
The real estate consultancy said that roughly 2.1 million sq. ft. of new retail supply became operational in the July to December period of CY2025.
AI‑driven technologies are enabling hyper‑personalised styling through generative AI, virtual try-ons, social sharing to reduce returns and manage inventory through predictive modelling, the report said.
Food and beverage formats accounted for around 12 per cent of leasing, driven by a preference for large experiential units in premium malls and high‑street hubs. Jewellery brands held about 8 per cent share with lab‑grown diamond retailers spearheading store expansions, the report said.
Retail take‑up rose increased significantly in H2 2025 to about 5.6 million sq. ft. led by Hyderabad, Delhi‑NCR and Chennai, the report said.
“Leasing momentum is being fuelled by retailers' emphasis on experiential flagship stores, kiosks, and Gen Z‑focused store formats further giving a boost to customer visits, dwell time and brand engagement,” said Anshuman Magazine, Chairman & CEO, India, South‑East Asia, Middle East & Africa, CBRE.
He said that the record leasing volumes in 2025 reflect a decisive shift towards quality-led, experience-driven growth, adding that retailers are increasingly experimenting with innovative store formats to boost customer visits, dwell time, and brand engagement.
“While retail leasing activity continues to be dominated by domestic players, international retailers remain active. Among domestic players, D2C brands continue to focus on offline expansion to improve execution and long-term viability,” said Ram Chandnani, Managing Director, Leasing Services, CBRE India, said, the report.
Chandnani said 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).
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor