Delhi NCR sees strong retail leasing activity during Q1 2025

• Gross leasing of 0.34 million sq ft and net absorption of 0.24 million sq ft were recorded during the quarter. In Q1 2025, the suburbs dominated leasing activity with a 73% share.
• Five new international retailers leased spaces in Delhi NCR to open their first stores in the country. These retailers were primarily automobile manufacturers and European coffee giants.

New supply of 0.3 million sq ft is recorded in Q1 2025

• In the suburbs, a new mall in Faridabad became operational during the quarter. The mall had a gross leasable area of 300,000 sq ft. Prominent domestic fashion and apparel anchors, along with consumer durable retailers, leased space in the newly completed mall.
• With the addition of a new mall during the quarter, Delhi NCR’s overall retail stock at the end of Q1 2025 reached 26.1 million sq ft.

Overall retail rents increase marginally by 0.03% q-o-q

• On a quarterly basis, rents were up by 0.13% in the Prime South submarket and up by 3.4% in the Prime Others submarket. With rents coming down in poorly managed malls in the suburbs, overall rents in this submarket declined by 2% q-o-q.
• On an annual basis, overall retail rents were up by 9%, and capital values were up by 10%.

Outlook: Retail leasing activity remains healthy, backed by strong supply

• 3.1 million sq ft of Grade A retail supply is expected to become operational between April and December 2025. The majority (74%) of this upcoming supply is in the suburbs, with most of it already heavily pre-committed.
• Retail leasing activity is expected to remain healthy, with new brands entering the country, international and domestic retailers expanding their footprint and the availability of new quality retail spaces. Retail rents are likely to rise significantly.