Resurfacing H1 2024 report: Delhi-NCR retail leasing rose as mall vacancies fell and rents climbed
Data resurfacing from H1 2024 showed Delhi-NCR retail leasing reached 3.1 million sq ft, up 7% year on year, while premium-mall vacancy fell to 8.3%. Noida and Gurugram recorded 12-15% leasing growth, with more than 27 million sq ft of new retail supply projected through 2028.
What happened
Delhi-NCR retail real estate market · Delhi-NCR retail real estate posted record leasing and higher rents in 2024, supported by declining mall vacancies,
Key facts
- Retail leasing rose 7% year-on-year to 3.1 million sq ft in H1 2024
- Premium mall vacancy fell to 8.3% in 2024 from 9% in 2023
- South Extension ground-floor rents reached ₹800-₹1,000 per sq ft
- Consumer spending grew 12% year-on-year
- Golf Course Road rents exceeded ₹300 per sq ft
- Noida and Gurugram retail leasing rose 12-15% in 2024
- 12 Delhi-NCR land transactions covered 160 acres in Q1
- FY2023-24 had 29 land deals spanning 313 acres
- Delhi-NCR is expected to add over 27 million sq ft of retail space during 2024-2028, 66% of major-city planned development
Why this matters
The region’s expanding mall pipeline creates opportunities for partnerships, store-network expansion and strategic leasing, but premium assets will command increasingly higher entry costs.
What to watch
- Quarterly premium-mall vacancy rate, especially whether it falls below 8%.
- Effective-rent growth versus headline-rent growth and changes in landlord incentives.
- Pre-leasing rates and delivery timing for the 27 million sq ft projected supply pipeline.
- Leasing absorption in Noida and Gurugram relative to Delhi and other NCR submarkets.
- Retailer store closures, lease renewals and sales-per-square-foot trends in premium malls.
- Consumer discretionary spending, luxury demand and food-and-beverage footfall growth.
- Prioritize lease renewals and expansion options in premium Delhi-NCR malls before vacancy tightens further.
- Underwrite new stores using higher occupancy-cost assumptions, including escalations, common-area charges and fit-out requirements.
- Concentrate flagship and experiential formats in high-footfall Noida and Gurugram assets while using smaller formats in secondary catchments.
- Negotiate flexible lease clauses, exclusivity protections, co-tenancy conditions and early renewal rights ahead of the supply pipeline.
- Monitor upcoming mall openings to identify pre-leasing opportunities and avoid overpaying for locations likely to face new nearby competition.