India’s retail real estate market is undergoing a major transformation, driven by shifting consumer preferences, digital disruption, and growing demand for experience-centric shopping. According to the latest ANAROCK Research, Apparel and Food & Beverage (F&B) brands together accounted for a massive 54% of total retail leasing in the first half of 2025 (H1 2025) across the top 7 cities — a sharp rise from 37% in 2023.

Retail Leasing Share – H1 2025 (Top 7 Cities)

Total Net Retail Absorption: 2+ million sq. ft. across top 7 cities

Leasing Share Trends (FY19 → FY25 → FY30 Projection)

Key Drivers of Change

E-commerce & Quick Commerce Impact:
Apparel brands, traditionally dominant in retail leasing, are now losing share to e-commerce and quick commerce platforms.

High-Value Consumption Rise:
Beauty & wellness, jewellery, sportswear, and experiential F&B concepts are gaining strong traction across malls.

Tech-Savvy Consumer Influence:
Retail is shifting to customized, tech-enabled formats to attract and retain attention of digital-first generations.

Expert Take

“Individually, the leasing share of apparel – currently the top leasing category – has declined from 42% in FY19 to 37% in FY25, and is expected to fall further to 32% by FY30. F&B, on the other hand, saw its leasing share increasing from 8% in FY19 to 12% in FY25, with projections to rise further to 16% in FY30.”
— Anuj Kejriwal, CEO & MD, ANAROCK Retail

“Today’s consumers want more than products – they want experiences, meaning, and alignment with their values. This paradigm shift is realigning Indian retail like never before.”
— Anuj Kejriwal, ANAROCK Retail

Consumer Shift at the Core

Millennials and Gen Z are setting the tone with their demand for:

• Convenience: Fast access via online and quick commerce
• Emotional connection: With brand stories and values
• Personalization: Tailored offers, tech-enabled experiences
• Sustainability & ethics: Conscious consumerism on the rise

These evolving preferences have created opportunities for F&B lounges, jewellery showrooms, gaming zones, and fitness/wellness centres to thrive in modern malls.

Retail Reimagined: What’s Next?

Retailers must now:

• Blend physical & digital (phygital) strategies
• Prioritize AI, automation & personalization
• Create immersive, value-led experiences
• Align with sustainability & cultural consciousness

With the leasing share of traditional categories like apparel declining, and high-engagement categories gaining ground, the writing on the wall is clear — experience is the new currency in India’s retail evolution.

Summary Box

Top Insights from H1 2025 Retail Leasing:

• 54% of leasing came from Apparel (33%) and F&B (21%)
• Jewellery segment grew from 2% (FY19) to 5% (FY25); expected 13% by FY30
• Retail is transforming to serve new-age, digital-first, experience-hungry consumers
• Quick commerce, AI, personalization & sustainability are redefining the game

Also Read: Supply Trends – Key Office Markets in India

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