Delhi-NCR’s retail real estate market saw record leasing in 2024
The retail real estate market in Delhi-NCR has reached unprecedented heights in 2024, driven by a surge in leasing activity, a drop in vacancy rates, and an increase in rental values. This landmark year has firmly established the region as one of India’s top destinations for retail investment. According to CBRE’s India Retail Figures H1 2024 report, retail leasing across the country grew by 7% year-on-year, totalling 3.1 million square feet, with Tier 1 cities like Delhi-NCR, Bengaluru, and Chennai leading the charge. The market’s strong performance is attributed to several key factors, including robust developer confidence, significant infrastructure improvements, and shifting consumer preferences.
In Delhi-NCR, the cities of Noida and Gurugram have taken centre stage as primary drivers of retail growth. Infrastructure developments such as the Delhi-Mumbai Industrial Corridor, the Dwarka Expressway, and the impending Jewar Airport have drastically improved connectivity, further boosting retail demand. Premium malls across the region saw vacancy rates fall to 8.3% in 2024, down from 9% the previous year, reflecting the growing appeal of quality retail spaces. High street locations such as South Extension in Delhi have seen a significant rise in ground floor retail rentals, which have surged to ₹800–₹1,000 per square foot. With limited new supply expected, these upward trends in rent are anticipated to continue.
The retail sector’s growth trajectory is further exemplified by statements from industry leaders like Ankit Sharma, VP of Leasing at Elan Group, who noted the sector’s adaptability and resilience in the face of evolving consumer needs. With strong demand in Tier 1 cities, there has also been rising activity in Tier 2 cities as brands look to tap into newer, underserved markets. This suggests that the retail real estate market is not only expanding but diversifying in its reach across urban centres in India.
From a sustainability standpoint, the retail real estate boom in Delhi-NCR reflects a changing urban landscape where increased commercial activity and improved infrastructure go hand-in-hand with smart urban planning. These developments contribute to a more sustainable city by improving connectivity and reducing congestion, thus helping to mitigate urban sprawl. However, the growth of this sector also requires thoughtful integration with environmental policies to ensure that the rapid pace of commercial expansion aligns with long-term sustainability goals. Ensuring energy-efficient construction, sustainable resource use, and eco-friendly practices in retail spaces will be essential as Delhi-NCR continues its urban transformation.
