Written by Manu Bhazan, Country Head of India 

India’s retail sector is entering a period of structural transformation, driven by rising disposable incomes, rapid urbanisation, and growing demand for premium consumer experiences.

These forces are positioning India as one of the strongest retail growth markets globally. 

India’s Tier 1 cities led retail rental growth in the APAC region. Galleria Market recorded a 25 percent year-on-year increase, followed by Connaught Place at 14 percent and Kemps Corner at 10 percent.

Across 16 tracked retail locations, average rental growth reached 6 percent, outperforming both global and APAC averages.

In contrast, Khan Market saw a more modest 3 percent increase, signalling a shift in retailer preference toward emerging, consumption-led neighbourhood hubs. 

Galleria Market’s ascent was also reflected globally, climbing to 26th in APAC rankings in 2025, up from 31st last year, with annual rents of $169 per sq ft.

Connaught Place ranked alongside it at 26th, supported by strong leasing momentum. 

High streets remain central to India’s retail landscape, accounting for over 50 percent of year-to-date leasing activity.

Supported by sustained GDP growth, urbanisation, and an expanding middle and affluent class, consumer spending on dining, fashion, wellness, and lifestyle categories continues to rise.

Combined with limited high-quality retail supply, these dynamics have positioned India’s retail sector as a clear regional outperformer.