Mumbai, Jan 28 (NationPress) Retail leasing activity in India's major cities soared to an unprecedented level of approximately 8.9 million sq. ft. in 2025, with total supply reaching about 4.3 million sq. ft.—a staggering 268 percent increase compared to 2024, according to a report released on Wednesday.

The study by CBRE South Asia indicated that Hyderabad was responsible for more than half of the new supply, followed closely by Mumbai and Delhi-NCR.

The fashion and apparel sector led the leasing efforts, capturing around 48 percent of the market share. New store openings in this category showcased a variety of offerings, including sustainable labels, streetwear, ethnic and fusion attire, athleisure, luxury brands, and direct-to-consumer labels.

According to the report, approximately 2.1 million sq. ft. of new retail space became available between July and December of 2025.

Innovative technologies powered by AI are facilitating hyper-personalised styling through generative AI, virtual fitting rooms, social sharing to minimize returns, and inventory management through predictive analytics, the report noted.

Food and beverage outlets constituted around 12 percent of the leasing market, spurred by consumer demand for large experiential spaces in premium shopping malls and upscale street locations. Jewellery brands accounted for about 8 percent of the market, with lab-grown diamond retailers leading the expansion.

Retail uptake saw remarkable growth in the latter half of 2025, reaching approximately 5.6 million sq. ft. largely driven by Hyderabad, Delhi-NCR, and Chennai.

“The leasing boom is being driven by retailers focusing on experiential flagship stores, kiosks, and formats tailored for Gen Z, enhancing customer visits, dwell time, and brand interaction,” stated Anshuman Magazine, Chairman & CEO for India, South-East Asia, Middle East & Africa at CBRE.

He emphasized that the record leasing figures in 2025 signify a pivotal shift towards quality-oriented, experience-centric growth, noting that retailers are increasingly testing innovative store formats to elevate customer engagement.

“While domestic players dominate retail leasing, international brands remain active. Among local entities, D2C brands are intensifying their offline presence to enhance execution and ensure long-term success,” commented Ram Chandnani, Managing Director of Leasing Services at CBRE India, as per the report.

Chandnani highlighted that retailers are leveraging the country's consumption uptrend, supported by low inflation, adjustments to income tax rates, and the streamlining of goods and services tax (GST).