The Indian retail real estate market is undergoing a structural shift driven by changing consumer preferences, with apparel and food & beverage (F&B) brands continuing to dominate leasing activity—but not without major shifts in category performance.
ANAROCK’s latest research reveals that of over 2 million sq. ft. of net retail absorption across the top 7 cities in H1 2025, apparel brands contributed to 33% of the total leasing, while F&B brands took up 21%. Combined, the two accounted for 54% of total leasing—a significant jump from 37% in 2023.
However, a deeper look shows diverging trajectories for both categories. “While apparel continues to lead, its leasing share has declined—from 42% in FY19 to 37% in FY25, with a further dip projected to 32% by FY30,” says Anuj Kejriwal, CEO & MD, ANAROCK Retail. “In contrast, F&B is steadily rising, from 8% in FY19 to 12% in FY25, and is expected to hit 16% by FY30.”
The decline in apparel leasing reflects the growing impact of e-commerce and quick commerce, especially in value-focused segments like hypermarkets. On the other hand, high-value consumption categories such as beauty & wellness, sports, jewellery, and experiential entertainment are gaining ground in mall spaces.
Jewellery, in particular, has shown impressive growth. From just 2% of retail leasing share in FY19, the category rose to 5% in FY25 and is projected to reach 13% by FY30.
The first half of 2025 also saw entertainment zones lease 16% and home & lifestyle brands take 11% of the total net absorption.
Consumer-First Leasing Strategies
Retailers are realigning their expansion strategies to cater to new-age consumers—millennials, Gen Z, and Gen Alpha—who value speed, convenience, personalization, and digital-first engagement over traditional retail experiences.
“We can see an unequivocal preference for quick, customized, valuable experiences clearly influenced by digital platforms and social media,” says Kejriwal. “This change is pushing retail beyond traditional stores to tech-enabled, customer-focused formats. The aspirations of today’s tech-savvy, fast-paced consumers is the key to retail success now.”
As retail faces new frontiers with the integration of AI, automation, and sustainability, the leasing patterns in India’s top metros reflect the larger evolution of consumer culture—and the imperative for brands to adapt accordingly.
