India’s real estate sector is experiencing a significant upswing in the first half of 2025, with both the retail and industrial warehousing segments witnessing robust growth, as per insights from leading consultants ANAROCK and Colliers India.
Retail leasing hits a new high with fashion and food in the lead:
According to ANAROCK Research, the retail sector across India’s top seven cities recorded over 2 million sq. ft. of net absorption in H1 2025. Apparel and food & beverage (F&B) brands accounted for a combined 54% share, reflecting a marked shift in consumer behaviour, especially among millennials and Gen Z. Apparel led the way with 33% of the leasing activity, while F&B followed with 21%. Other segments like entertainment zones (16%) and home & lifestyle brands (11%) also saw healthy uptake.
Apparel share declining; F&B and lifestyle categories on the rise:
Anuj Kejriwal, CEO & MD of ANAROCK Retail, highlighted a notable transformation in leasing dynamics. “The leasing share of apparel has dropped from 42% in FY19 to 37% in FY25 and is projected to fall further to 32% by FY30. Meanwhile, F&B is on the rise, growing from 8% in FY19 to 12% in FY25, and expected to hit 16% by FY30.” He added that high-value consumption categories such as beauty & wellness, sports, and jewellery are gaining traction in malls. Jewellery leasing, for instance, has risen from just 2% in FY19 to 5% in FY25 and is projected to reach 13% by FY30.
Younger consumers drive digital-first retail formats:
This retail evolution is driven by a younger, tech-savvy demographic that values convenience, personal connection, and digital engagement—trends that are pushing retailers to adapt beyond traditional models. The focus is shifting to tech-enabled, flexible formats that offer personalization and instant gratification.
Warehousing sector records highest-ever H1 leasing activity:
In parallel, India’s industrial and warehousing sector recorded a historic 19.5 million sq. ft. of Grade A leasing across the top eight cities in H1 2025, according to Colliers India, marking a 33% year-on-year growth. Delhi NCR led the charge with 5.6 million sq. ft., followed by Chennai (3.7 mn sq. ft.), Mumbai (3.1 mn sq. ft.), and Bengaluru (2 mn sq. ft.).
3PL, engineering, and e-commerce fuel demand for space:
Vimal Nadar, National Director & Head of Research at Colliers India, said, “This heterogeneity of demand reflects the sector’s resilience and aligns with India’s broad-based economic growth.” Major leasing activity was driven by third-party logistics (3PL), engineering, and e-commerce firms. Notably, 51% of all leasing came from large deals exceeding 200,000 sq. ft., underlining strong occupier confidence.
Developers match momentum with fresh Grade A supply:
Developers kept pace with the demand, delivering 19.4 million sq. ft. of new Grade A supply in H1 2025. With robust absorption trends and continued infrastructure investments, the outlook for the remainder of the year is bullish. Total new supply for 2025 is projected to reach 35–40 million sq. ft., especially across key logistics hubs.
Retail and logistics converge to shape India’s growth narrative:
Together, the retail and industrial segments are not only shaping India’s urban consumption and logistics narratives but are also setting the tone for sustained real estate growth in a digitally driven, experience-first economy.
