Leasing Momentum Continues to Drive NCR Retail Market
US clothing brand American Eagle recently leased a 3,874 sq ft store at Ambience Mall in Gurgaon, reflecting the sustained leasing momentum in the NCR retail market.
Average Rents for Vanilla Stores in Grade A/A+ Assets
- Currently averaging Rs 400-450 per sq ft
- Grade A+ malls are witnessing stronger rental appreciation, outperforming Grade A assets
"On a year-on-year basis, Delhi-NCR's Grade A+ malls have witnessed a stronger rental appreciation of 8-12%, outperforming Grade A assets at 6-8%," said Anuj Kejriwal, Retail CEO of the ANAROCK Group.
Developers Scale Up, NCR to See 19 Million Sq Ft of New Retail Supply
With an estimated 19 million sq ft of new retail supply slated to enter the NCR market between 2026 and 2031, developers are aggressively scaling up to capitalise on the sustained momentum.
Landlords Gain Pricing Power, Tenant Churn Remains Minimal
- A constrained supply environment has shifted negotiating power firmly in favour of landlords
- Tenant churn remains minimal, allowing developers to adopt a performance-led leasing approach
Deliberate Cross-Subsidisation Strategy by Mall Operators
Mall operators are using a deliberate cross-subsidisation strategy, leasing large anchor stores at much lower rates (Rs 110-150 per sq ft) while vanilla stores drive most of the rental income.
Complementary Retail Formats Gain Traction
- Integrated commercial hubs, Shop-Cum-Office (SCO) developments, and premium high streets are gaining popularity
- The NCR is witnessing a significant surge in these complementary retail formats
Recent Transactions in the NCR
- Zara leased 30,597 sq. ft. at Pacific Mall in Delhi's Tagore Garden
- Levi's leased 15,230 sq. ft. at Pacific Mall in Delhi's Tagore Garden
- Foot Locker leased 13,731 sq ft mini-anchor space at DLF Mall of India in Noida
- Cafeteria & Co. leased 9,243 sq ft at DLF Mall of India in Noida
Broader Real Estate Momentum
The Delhi-NCR residential real estate market is also witnessing robust annual growth, driven by an unprecedented surge in luxury housing and steep price appreciation.
Price Appreciation in the NCR
- The average base selling price in the region climbed to Rs 9,620 per sq ft
- The NCR emerged as the clear leader in price growth among India's top seven cities, recording a staggering 15% year-on-year appreciation
Luxury Properties Drive Growth in the NCR
- Luxury and ultra-luxury homes (priced above Rs 2.5 crore) accounted for a massive 54% of the region's new project launches
- This distinct shift towards premium properties is fueling the growth in the NCR residential real estate market