Delhi to see over 3m sq ft of new retail space in 2025

Nearly half of it will be in Gurgaon.

According to a JLL report, over 3 million sq ft of new retail space is expected to come on stream in 2025 with Gurgaon accounting for 47%. A majority of the new supply is pre-committed.

“With new supply coming in, retail leasing is expected to remain robust in 2025. Domestic retailers are looking to expand their footprint, and more international retailers are entering the country. New-age and D2C brands are expected to continue their expansion activity,” the report said.

Here’s more from JLL:

Gross leasing of 0.24 million sq ft was recorded in Q4 2024, taking the annual gross leasing up to 0.96 million sq ft. The Suburbs dominated the leasing activity in 2024.

Fashion & Apparel and Food & Beverage remained the leading retailer categories in terms of space take up. Around 15 international retailers chose NCR to open their first stores in the country during the year.

NCR’s annual retail supply stands at 0.23 million sq ft

No new developments came on stream during the last quarter of 2024. Only a single mall became operational during the year, with a gross leasable area of 225,000 sq ft in Gurgaon in the Suburbs submarket.

On an annual basis, retail supply in NCR was down by 78% y-o-y. Strong retail supply across quality developments is likely to become operational in the coming year.

With vacancies dipping, rents continue to increase

Overall retail rents in NCR were up by 2.1% in Q4 2024 compared to the previous quarter. On an annual basis, retail rents were up by 9.7%.

The Prime Others submarket saw the largest rent increase, with rents up by 16.5% annually, followed by the Prime South submarket, where rents were up by 13% y-o-y.