Homegrown brands drive 3.2M sq. ft. retail leasing surge in Q3
17 November 2025, Mumbai
India's retail real estate sector exploded in Q3 2025, recording 3.2 million sq. ft. in gross leasing, a substantial 65% year-on-year jump. This massive surge is overwhelmingly powered by domestic retail groups, securing 76% of the leased space (2.6 million sq. ft.). Leading the charge are categories like Fashion & Apparel (35% share) and Daily Needs & Grocery (11%), signaling strong consumer confidence in everyday spending.
The expansion is marked by an aggressive move into Tier-2/metro cities, blending physical stores with established online presence. For example, menswear brand The Bear House is strategically opening new 2,000 sq. ft. stores in key growth markets like Hyderabad to support robust online demand, using a 'click-and-mortar' model to enhance customer experience. This focus on omnichannel strategy and local market understanding by Indian brands, particularly in high-growth corridors like Delhi-NCR (35% leasing share)—is the primary driver. Despite challenges in competition and logistics, this strong domestic activity is expected to push India’s full-year retail leasing volume to a projected 10.5–11.5 million sq. ft.
Latest Publications
