New Delhi: As Delhi-NCR prepares for its next phase of retail expansion, a clear shift is underway. The future of shopping growth is no longer anchored only in marquee high streets or mega malls. Instead, neighbourhood-level micro markets—closer to where people live, commute, and socialise—are emerging as the real engines of retail momentum.
Retailers are increasingly recognising that proximity to everyday life, supported by rising disposable incomes and improving connectivity, delivers deeper and more sustainable consumer engagement. Heading into 2026, understanding these local consumption patterns will be critical for brands and investors looking to unlock long-term value.
Retail Leasing Momentum Signals Structural Shift
According to recent data from JLL, India’s retail real estate market strengthened significantly in Q3 2025, with gross leasing across the top seven cities rising to 3.2 million sq. ft., marking a 65% year-on-year increase. The July–September quarter proved pivotal, as new, investment-grade supply entered previously constrained markets.
Delhi-NCR and Hyderabad together accounted for 57% of total leasing activity, reflecting how fresh mall completions and the revival of high-street locations are reshaping retailer expansion strategies. Growth was broad-based, spanning apparel, food & beverage, daily needs, grocery, and luxury, underscoring renewed confidence in physical retail.
Domestic Brands Take the Lead
One of the most notable trends from Q3 was the dominance of Indian retailers, who contributed 81% of total leasing activity. Indigenous brands leased 2.6 million sq. ft. during the quarter—representing a 76% YoY increase compared to Q3 2024. Foreign brands accounted for the remaining 19%.
Fashion and apparel led demand with a 35% share, followed by food & beverage (16%) and daily needs and grocery (11%). The rising share of daily-needs retailers highlights a growing emphasis on anchoring retail developments with necessity-led formats that ensure consistent footfall.
Neighbourhood-Centric Retail Comes Into Focus
Industry leaders believe this momentum will intensify in 2026 as retailers pivot from legacy hubs to high-density, neighbourhood-centric catchments.
Pankaj Jain, Founder and Chairman, SPJ Group, says,
“Retail growth in Gurugram will no longer be defined by traditional high-profile streets alone. The next phase will be driven by neighbourhood high streets where community, convenience, and spending power converge. These micro markets offer visibility, footfall, and strong purchase intent within compact catchments—making them increasingly attractive for both brands and investors.”
Malls as Social and Lifestyle Anchors
Micro markets are not limited to high streets alone. Established malls in emerging neighbourhoods are also evolving into social hubs that blend retail with leisure and entertainment.
Arjun Gehlot, Director, Ambience Malls – Vasant Kunj and Gurugram, notes,
“Retail centres in Gurugram and Vasant Kunj have become integral to how residents spend time—anchored by F&B, entertainment, and lifestyle offerings. As residential density rises and connectivity improves, these malls are embedding themselves into daily routines, driving higher footfalls and longer dwell times. This dynamic positions NCR’s micro markets for sustained retail growth in 2026.”
Where the Next Retail Hotspots Are Emerging
Several NCR corridors are already drawing attention as high-potential retail micro markets. Areas such as Dwarka Expressway, Golf Course Extension Road, Greater Noida West, Sector 150 Noida, Faridabad’s Neharpar belt, and Ghaziabad are witnessing strong residential absorption, improved infrastructure, and integrated mixed-use development.
Sakshee Katiyal, Chairperson, Home & Soul, explains,
“Retail must now function as a neighbourhood service, not just a commercial activity. Micro markets like Noida, Greater Noida, and Ghaziabad show that when daily conveniences are combined with entertainment and curated experiences, people choose to spend both time and money locally. Leasing interest in these pockets has surged even ahead of broader market recovery.”
Dwarka Expressway: A Case in Point
Among emerging corridors, Dwarka Expressway stands out as a key retail growth story.
Ashwani Kumar, Pyramid Infratech, says,
“Dwarka Expressway is becoming one of Gurugram’s most compelling retail micro markets. With strong residential growth, rapid infrastructure development, and a diverse catchment of young families and professionals, the corridor offers enduring demand. As connectivity improves, retailers can draw footfall from adjoining areas, accelerating retail breakout in 2026.”
The Road Ahead
As NCR’s retail landscape evolves, 2026 is shaping up to be a defining year. Brands and investors are increasingly shifting focus from legacy locations to micro markets that combine residential density, connectivity, and rising purchasing power.
With leasing momentum strengthening across both malls and neighbourhood high streets, NCR’s retail future will be built not just on scale—but on how closely retail integrates with everyday urban life.
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