India’s retail real estate environment is being reshaped dramatically, and the National Capital Region (NCR) is solidly at its centre. In addition to its traditional prowess in office markets, Delhi NCR is today India’s leading retail destination, driven by an insatiable consumer demand for fashion and a thriving, dynamic food and beverage (F&B) ecosystem. This growth is driven by sound economic fundamentals, huge infrastructure development, and an influx of global brands wanting a portal into the Indian consumer.
Recent reports, such as by JLL, identify the F&B segment as retail real estate’s growth driver for the entire country, representing 4 million sq. ft. of leasing in top cities over the past ten quarters. Though Bengaluru dominates in clean F&B volume, Delhi NCR, rivalled closely by Mumbai, completes the top three, driving two-thirds of all national leasing. Its contribution to the overall retail leasing has risen dramatically from 16% in 2023 to 22% in 2025, a clear pointer to its game-changing impact.
But Delhi NCR’s tale is one of diversified strength. 27 global brands entered India alone in 2024, and a large share of them targeted Delhi-NCR’s high-spending, high-aspirations demographic. This is generating huge demand for quality, Grade-A retail space in both established malls and new high streets. Also a central trend characterising NCR’s retail growth is the complementary coexistence of shopping malls and high streets. Instead of being rivals, they serve distinct purposes. High streets became the most preferred option for F&B players, accounting for 54% of sector leasing, valued for their agility, organic traffic, and lively atmosphere. Khan Market, Cyber Hub, and new shopping corridors along the SPR are flourishing.
Concurrently, destination malls within hubs such as Gurugram are still paramount for big fashion flagships and family-entertainment-focused F&B formats. Developers now think deliberately while designing future malls to include up to 25% of space for F&B, turning them into experiential social spaces that transcend the act of shopping.
This retail energy has attracted institutional interest. Since 2018, institutional capital of about $2.5 billion has poured into Indian retail real estate, an endorsement topped by the historic launch of the Nexus Select Trust REIT in 2023. With 18.6 million sq. ft. of fresh mall space added in the last five years, the pipeline remains robust. Importantly, of the 40 million sq. ft. of space to be added by 2027, a whopping 30% of which is expected to be in NCR, further solidifying its stronghold for the next foreseeable future.
“The NCR is riding high on tailwinds in retail, after witnessing gigantic residential growth. It is fueled by a positive global perception, fast economic development, and positive investor sentiments. The demand is directly due to prudent business-friendly policies, a giant push on infrastructural growth like the Dwarka Expressway, and the overall economic success of the region,” says, Arjun Gehlot, Director, Ambience Malls, Gurugram and Vasant Kunj
Pankaj Jain, Founder and CMD, SPJ Group – “Gurugram’s high-potential sectors are becoming the nerve centres of festive retail. Malls located in these growth corridors benefit from high family footfall, driven by aspirational buyers looking for both shopping and lifestyle experiences. As developers, we see a marked surge during festivals, where footfall often doubles, adding to the role of neighbourhood destination malls in shaping consumer journeys. Leasing demand also aligns with this pattern, as brands seek to enter high-potential neighbourhoods where festivals accelerate discovery. For our high-street retail project located in Sec-14 Gurugram, we have rolled out an exclusive campaign during Navratri, which is SPJ NAVOTSAV– PROPERTY KA MAHA UTSAV. With buyers and investors keen to make big-ticket investments during festivals, our special Navratri campaign offers an assured gift on every booking. We have 9 special offers for 9 days as a value add to make our patrons’ property investment more rewarding.
India’s increasing global economic clout is drawing record investments into retail real estate. In Gurugram, this surge is particularly visible along key corridors such as Golf Course Extension Road, which has emerged as a hub for premium retail and lifestyle destinations. This expansion is being driven by the rising aspirations of the growing middle class, compelling returns, and fast-paced infrastructure development. The initiatives undertaken by the state government to foster a business-friendly environment are giving a huge push to retail growth, and the future of these spaces looks absolutely exciting and dynamic for all stakeholders,” says Ishaan Singh, Director, AIPL.
Mr Harinder Singh Hora, Founder Chairman, Reach Group, says, ” Gurugram remains NCR’s retail frontrunner, with mixed-use integrated hotspots emerging as the new gold standard. This growth in mixed-use development is creating a fluid live-work-play environment that attracts retailers and consumers throughout the day and night. The Indian retail property market is poised for strong growth, with new malls and prime developments slated for the coming years. Of the millions of square feet of retail development in the pipeline, organized retail malls will consume a significant portion of demand by all categories of retail brands. Based on recent leasing activity, high streets are also getting reasonable demand for F&B leasing at prime locations where cape…
Prakash Mehta, Chairman and Managing Director, Ocus Group, says, “High street retail thrives on immediacy, accessibility, and community connect—qualities that shine brightest during the festive season. In Gurugram, the buzz of high streets during Diwali or Christmas mirrors the celebratory energy of families shopping together. Brands favour these formats because they offer visibility in the neighbourhoods. At Ocus, we see festive months as catalysts that elevate the value of high-street destinations, driving both leasing activity and consumer engagement. This format resonates with consumers who seek convenience without compromising on variety, especially during peak festive indulgence.”
Delhi-NCR’s leadership is evident; it’s the gateway of choice for international brands to enter India. The entry of overseas names in fashion, accessories, and F&B is radically transforming our retail environment. Developers are reacting by going whole hog to develop Grade-A buildings that will satisfy these brands’ stringent requirements.
