Delhi-NCR set to add 27m sq ft of retail space by 2028 as leasing and rents climb
Delhi-NCR retail leasing rose 12–15% in 2024, while premium-mall vacancy declined to 8.3%. The region is projected to account for 66% of planned retail development across major Indian cities through 2028, led by Noida and Gurugram mixed-use projects.
What happened
Delhi-NCR retail real estate market · Delhi-NCR retail real estate saw record leasing, falling mall vacancies and rising high-street rents in 2024.
Key facts
- India retail leasing rose 7% YoY to 3.1 million sq ft in H1 2024
- Consumer spending grew 12% YoY
- Premium mall vacancy fell to 8.3% from 9% in 2023
- South Extension ground-floor rents reached ₹800–₹1,000 per sq ft
- Golf Course Road rents surpassed ₹300 per sq ft
- Noida and Gurugram retail leasing rose 12–15% in 2024
- 12 Delhi-NCR land deals covering 160 acres in Q1
- FY2023-24 recorded 29 land deals spanning 313 acres
- Delhi-NCR is projected to add over 27 million sq ft of retail space during 2024–2028
- Delhi-NCR planned space represents 66% of anticipated development across major cities
Why this matters
The development surge creates partnership, acquisition and format-expansion opportunities around Noida and Gurugram mixed-use projects, with priority on assets that can sustain footfall as new supply enters the market.
What to watch
- Quarterly net absorption versus completions in Delhi-NCR retail space
- Premium-mall vacancy trend relative to the current 8.3% level
- Pre-leasing rates and construction progress at major Noida and Gurugram mixed-use projects
- Lease renewal spreads, tenant incentives and revenue-share terms
- Store-opening plans from fashion, beauty, electronics, QSR, luxury and international retailers
- Consumer spending growth, residential handovers and office occupancy in key catchments
- Financing costs, construction inflation and regulatory approvals affecting project delivery
- National and international brands will prioritize larger flagship, experience-led and omnichannel stores in established Noida and Gurugram catchments.
- Mall developers will use flexible lease structures, fit-out support and curated F&B, entertainment and wellness anchors to pre-lease projects before completion.
- Retailers will become more selective on location, favoring revenue-share leases and shorter commitments in unproven mixed-use developments.
- Owners of older malls will accelerate renovations, tenant remixing and conversion of weak retail space into F&B, entertainment, offices or medical uses.
- Higher grade-A rents will increase retailer focus on store productivity, local assortment and fulfillment-from-store economics.