India’s retail leasing landscape is undergoing a generational shift, with millennials, Gen Z, and Gen Alpha reshaping consumption patterns and brand expectations. In the first half of 2025, apparel and food & beverage (F&B) brands accounted for 54% of total retail leasing across the top seven cities, absorbing over 2 million sq. ft. of net space.
While apparel remains the top leasing category, its share has declined from 42% in FY19 to 37% in FY25, and is projected to fall further to 32% by FY30, reflecting the growing dominance of e-commerce and quick commerce platforms. In contrast, F&B leasing has surged, rising from 8% in FY19 to 12% in FY25, with expectations to reach 16% by FY30, driven by experiential consumption and dine-in culture.
Other high-value categories are gaining ground. Jewellery leasing, once a modest 2% in FY19, has climbed to 5% in FY25, and is projected to hit 13% by FY30, signaling a shift toward aspirational and repeat-footfall tenants. Beauty & wellness, sports, and entertainment zones are also expanding their footprint, reflecting rising disposable incomes and lifestyle-driven preferences.
Of the total leasing in H1 2025: Apparel brands absorbed 33%; F&B brands took up 21%; Entertainment zones leased 16%; Home & lifestyle brands accounted for 11%
According to Anuj Kejriwal, CEO & MD of ANAROCK Retail, “Retail is no longer just about selling products. It’s about creating meaningful, flexible, and digitally integrated experiences that align with the values of today’s customers.” The rise of tech-enabled, emotionally resonant formats is pushing malls and high-street retail to evolve into lifestyle hubs.
As AI, automation, and sustainability reshape retail operations, brands must now deliver more than convenience—they must offer connection, personalization, and purpose. The future of Indian retail lies in how well it adapts to the aspirations of a fast-paced, digital-first generation.
