India's Retail Real Estate Poised for Growth Post-Pandemic

Retail Real Estate Momentum Builds

India’s retail real estate sector is heading toward a strong recovery milestone in 2025, with leasing activity projected to reach a post-pandemic high. After years of disruption, the sector is witnessing renewed confidence from retailers, developers, and investors, signalling a sustained turnaround in commercial real estate.

Demand Led by Organised Retail

The resurgence is being driven largely by organised retail formats, including malls, high-street developments, and mixed-use projects. Brands across fashion, food and beverage, electronics, and lifestyle categories are actively expanding their physical footprints, reflecting confidence in consumer spending growth and in-store engagement.

Key Cities Driving Leasing Activity

Major metropolitan regions such as Mumbai, Delhi NCR, Bengaluru, Hyderabad, and Chennai continue to dominate retail leasing volumes. These cities benefit from higher disposable incomes, dense catchment areas, and evolving shopping behaviour. Tier-II cities are also emerging as new growth engines, supported by improving infrastructure and rising urbanisation.

Shift in Retail Strategy

Retailers are adopting an omnichannel approach, where physical stores complement digital platforms. Well-located stores are increasingly viewed as brand experience centres rather than pure transaction points. This shift is boosting demand for high-quality retail spaces with strong footfall potential and flexible layouts.

Improved Supply and Project Completions

On the supply side, developers are accelerating the completion of stalled projects and launching new developments aligned with current market preferences. Modern retail assets now focus on open layouts, entertainment zones, food courts, and experiential offerings, helping malls reposition themselves as lifestyle destinations.

Investor Confidence Strengthens

The steady leasing momentum has also strengthened investor confidence in retail assets. Institutional investors and developers view retail real estate as a long-term play, supported by stable rentals, improving occupancies, and rising consumption. This has reinforced the role of retail within India’s broader real estate investment landscape.

Outlook for 2025

With demand outpacing new supply in several micro-markets, rentals are expected to remain stable with selective upside. As economic activity strengthens and consumption-led growth continues, India’s retail real estate sector is positioned to deliver sustainable growth well beyond 2025.

Enjoyed this update? Visit PropTech Pulse for more real estate news and market insights.