India’s consumer market is witnessing a resurgence, fueled by post-pandemic economic recovery and a renewed sense of confidence among buyers. Rising disposable incomes, shifting lifestyle aspirations, and the seamless integration of digital influences into offline experiences are redefining how Indians spend, socialize, and travel. At the forefront of this evolution, the retail and hospitality sectors are emerging as twin engines of growth, not merely responding to demand but actively shaping it. From experiential malls to curated hotels and resorts, these sectors are turning everyday consumption into a sophisticated, lifestyle-driven experience, signalling a new era in India’s consumer story.
As per JLL, the sector's momentum translated into a 54% year-on-year jump in gross leasing during the year, reaching a total of 12.5 million sq ft. The December quarter emerged as the best performing, with 3.6 million sq. ft of space leased. The sharp uptick reflects renewed consumer confidence and an acceleration in brand expansion plans, as retailers once again prioritise store-led growth to capture footfalls and deepen market presence after years of cautious recovery.
Several other factors are converging to propel retail and hospitality into high-growth territory. Rising urbanization and the expansion of Tier-II cities are creating demand for lifestyle destinations and premium hospitality experiences beyond traditional metros. Today, consumers are increasingly experience-driven, seeking curated interactions and memorable engagements rather than mere transactions, prompting malls and hotels to rethink design, programming, and services. Technology is playing a transformative role, with smart malls, AI-driven personalization, contactless solutions, and app-based loyalty programs enhancing convenience and engagement. Complementing these trends, policy stability, infrastructure development, and organized retail frameworks are instilling investor confidence, creating a fertile environment for new projects to thrive.
Amid this scenario, malls and high-street retail are emerging as more than shopping destinations. Multi-format retail is taking centre stage, with entertainment zones, curated F&B streets, and experiential pop-ups designed to engage visitors at every touchpoint. The Delhi-NCR region exemplifies this trend, with Noida, Gurugram, and central Delhi leading the charge in premium retail expansion.
Arjun Gehlot, Director, Ambience Malls, Gurugram says, “Leading retail in Gurugram is no longer about transactions alone; it requires a mindset shift toward experience-driven ecosystems. Malls are evolving into destinations that create moments which truly resonate—curated events, immersive F&B journeys, and lifestyle experiences that foster genuine emotional connection. Hence, this segment demands foresight: anticipating how consumer behavior will change, leveraging technology and design to stay ahead, and integrating sustainability without compromise. By positioning malls as community anchors rather than mere commercial assets, developers are not only driving engagement and loyalty but also setting benchmarks for modern retail in India’s most dynamic urban markets.”
Moreover, India’s hospitality sector is experiencing a strong post-pandemic rebound, driven by both business and leisure travel. Premiumization is at the forefront, with boutique hotels, luxury resorts, and experiential stays seeing strong demand as travellers increasingly seek curated, memorable experiences rather than basic accommodation. Beyond metro cities, Tier-II and emerging destinations are attracting significant investment, fueled by lifestyle tourism, corporate travel, and the rise of weekend getaways.
Complementing this growth, the Budget’s proposal to upgrade the National Council for Hotel Management and Catering Technology into a National Institute of Hospitality aims to bridge the gap between academia and industry, creating globally competitive talent and strengthening service standards just as India’s hotel and tourism capacity expands rapidly.
Nandini Taneja, Chief Executive Officer, Bhumika Enterprises, says, “In India, both retail and hospitality are increasingly defined by the ability to create memorable, immersive experiences rather than simply providing products or services. This shift is reflected in the strong revival of organised retail, with leasing activity rising 54% year-on-year, underscoring renewed confidence in physical formats. Hotels and malls are curating every touchpoint, from personalized service and locally inspired design to interactive entertainment and F&B journeys, to leave lasting impressions on visitors. Anticipating evolving consumer expectations and blending operational efficiency with emotional engagement has become central to growth. With domestic travel and premium lifestyle consumption at an inflection point, leading properties and retail destinations are emerging as benchmarks for innovation, setting new standards for experiential design, service, and consumer engagement across sectors.”
Ajendra Singh, Vice-President, Sales and Marketing, Spectrum Metro, says, “In Noida, malls are increasingly behaving like managed destinations. What’s driving this shift is not just discretionary spending, but the growing overlap between retail and hospitality-led consumption. Food streets, leisure zones, and long-stay social spaces are now doing the heavy lifting in driving footfalls and dwell time. The focus has clearly moved from transactional retail to creating environments where people spend hours, not minutes. This evolution is positioning Noida’s malls as lifestyle anchors, combining commerce, leisure, and hospitality in a way that reflects how urban India now consumes.”
Thus, both retail and hospitality are set for sustained expansion across metros and beyond, driven by rising consumption, improving connectivity, and deeper penetration of organized formats. What will ultimately separate leaders from laggards is strategic capital deployment, smart infrastructure integration, and clear brand positioning, factors that will define long-term relevance as competition intensifies across India’s consumer-facing sectors.
