Delhi’s total retail stock to hit 28.7m sq ft by year-end

Over 2.6m sq ft of new supply will be added in H2 2025 alone.

No new mall completions were recorded in Delhi in Q2 according to a JLL report, and the total mall supply for H1 2025 stood at 0.3 million sq ft. As a result, the stock remained unchanged at 26.1 million sq ft.

Additionally, the report revealed that 2.63 million sq ft of new supply is anticipated for H2 2025, taking up the total stock to 28.7 million sq ft by end-2025.

Here’s more from JLL:

Despite no new mall completions recorded in the quarter, net absorption remained strong. Net absorption of 0.15 million sq ft was recorded in the quarter, taking the H1 2025 total to 0.38 million sq ft, up by 62% compared to H1 2024.

The gross leasing volume for Delhi NCR during the quarter stood at 0.53 million sq ft. The Suburbs had 56% of the leasing during the quarter, followed by Prime Others at 30%. Fashion & Apparel, followed by Food & Beverage, remained the top occupier categories.

Rents remain largely stable during the quarter

Rents in the limited, well-performing malls in the Prime Others submarket went up, pushing the overall rents of the submarket up by 1.4% q-o-q and 13% y-o-y.

In the Suburbs, the transacted rents for some underperforming malls have decreased, leading to a slight decline in the submarket’s overall rent. Rents across all submarkets are expected to rise going forward.

Outlook: Retail leasing activity to remain healthy, backed by strong supply

More than half (55%) of the H2 2025’s projected supply will be in Gurgaon, across three new developments, spanning over 1.4 million sq ft. Two premium malls in the Prime Others submarket are also expected to become operational during H2 2025.

Retail leasing activity is expected to remain strong, with retailers expanding their portfolios. More international brands to enter the country and more online brands to open physical stores. Retail rents across all submarkets are expected to rise.