Retail Leasing Surges 7% in India as Delhi-NCR Sets Benchmark in 2024

The retail real estate sector in Delhi-NCR reached new heights in 2024, marked by record leasing activity, declining vacancy rates, and surging rental values. Bolstered by major infrastructure advancements and evolving consumer behavior, Delhi-NCR has solidified its position as India’s premier destination for retail investment.

According to CBRE’s India Retail Figures H1 2024, retail leasing across India grew by 7% compared to 2023, reaching 3.1 million square feet. Tier 1 cities like Delhi-NCR, Bengaluru, and Chennai led this charge, with Delhi-NCR emerging as a standout performer.

Within Delhi-NCR, Noida and Gurugram have played pivotal roles, driven by transformative projects like the Delhi-Mumbai Industrial Corridor, Dwarka Expressway, and the upcoming Jewar Airport. These developments have significantly improved connectivity, fueling retail demand. Premium malls across the region reported vacancy rates dropping to 8.3%, down from 9% the previous year, while popular high streets such as Delhi’s South Extension experienced a surge in retail rentals, ranging from ₹800 to ₹1,000 per sq. ft.

Ankit Sharma, VP-Leasing at Elan Group, remarked, “India’s retail sector has showcased remarkable resilience and adaptability in 2024. With retail leasing growing by 7% year-on-year, Tier 1 cities are driving this expansion, and Tier 2 cities are also witnessing increased activity as brands explore new markets. Moreover, a 12% year-on-year rise in consumer spending highlights renewed confidence in the economy.”

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Gurugram continues to redefine retail experiences with projects like Elan Miracle and Elan Paradise, offering innovative mixed-use developments. Locations such as Golf Course Road have seen rental rates exceeding ₹300 per sq. ft. Similarly, Noida, supported by the Noida Expressway and Jewar Airport, has emerged as a lifestyle and entertainment hub with thriving projects like Paras Avenue 129 and Bhutani Grandthum. Retail leasing in both cities surged by 12–15% in 2024.

Kunal Rishi, COO of Paras Buildtech, highlighted Noida’s rapid growth, saying, “Transformational infrastructure projects like Jewar Airport and Noida Expressway have elevated the city as a preferred destination for businesses and residents. The appreciation in property values is a testament to its strategic importance and long-term potential.”

A report by ANAROCK noted a surge in land acquisition activity in Delhi-NCR in 2024, underscoring developer confidence. The fiscal year 2023-24 recorded 29 land deals covering 313 acres, driven by strategic investments and infrastructure advancements.

Looking forward, Delhi-NCR is set to dominate India’s retail real estate pipeline from 2024 to 2028, with over 27 million sq. ft. of retail space planned. This accounts for 66% of the total anticipated retail development across major cities, cementing Delhi-NCR’s status as India’s leading hub for retail real estate.