Apparel contributed around 25 % of the total 4.3 million sq.ft. retail space absorption across the top seven cities in H2 2025, reflecting the robust health of the apparel retail industry.
According to ANAROCK’s RELEAP 2026 report, apparel contributed the lion’s share of retail leasing demand across cities. For instance, Chennai led with a 34.1% share of total retail absorption of 0.27 million sq.ft., followed by Mumbai (MMR) at 30.5% of 0.55 million sq.ft., Pune at 28.6% of 0.45 million sq.ft., NCR at around 20% share of 0.86 million sq.ft., Hyderabad at 19% of 0.84 million sq.ft., Bengaluru at 18% of 1.25 million sq.ft. Kolkata, too, recorded steady retail absorption of 0.12 million sq.ft. in H2 2025, with apparel contributing significantly to leasing activity.
City-wise rental benchmarks for 2025 indicate that NCR commands the highest rentals, with high streets like Khan Market reaching Rs 1,600 (US $17.19) per sq.ft., followed by Karol Bagh at Rs 406 (US $4.36) and Lajpat Nagar at Rs 376 (US $4.04), while mall rentals range from Rs 503 (US $5.40) to Rs 719 (US $7.73) per sq.ft.
Mumbai followed, with high-street rentals between Rs 1,000-1,500 (US $10.75 – US $16.12) per sq.ft. on Linking Road, Rs 600-800 (US $6.45 -US $8.60) on Andheri Link Road, and Rs 400-700 (US $4.30-US $7.52) at Kalaghoda, while mall rentals range from Rs 306 (US $3.29) to Rs 488 (US $5.24) per sq.ft. Kolkata ranks next, with high streets at Rs 800-1,000 (US $8.60-US $10.75) per sq.ft. and malls between Rs 400-600 (US $4.30-US $6.45) per sq.ft.
Bengaluru recorded high-street rentals between Rs 176-326 (US $1.89-US $3.50) per sq.ft. and mall rentals of Rs 467-494 (US $5.02-US $5.31) per sq.ft., followed by Pune with high streets at Rs 186-307 (US $2-US $3.30) per sq.ft. and malls between Rs 291-422 (US $3.13-US $4.53) per sq.ft. Chennai sees comparatively moderate rentals, with high streets ranging from Rs 123-349 (US $1.32-US $3.75) per sq.ft. and malls at Rs 307-379 (US $3.30-US $4.07) per sq.ft. Hyderabad remains among the more affordable markets, with high-street rentals between Rs 195-252 (US $2.10-US $2.71) per sq.ft., while mall rentals range from Rs 252 to Rs 502 (US $2.71-US $5.39) per sq.ft.
Overall, mid-sized store formats (1,000-5,000 sq.ft.) continued to dominate transactions, highlighting strong demand for scalable retail spaces.
“With a strong pipeline of institutional-grade developments and evolving retailer strategies, India’s retail sector is well-positioned for sustained growth in the near to medium term, supported by improving consumption trends and a maturing organised retail ecosystem.” said Anuj Kejriwal, Founding Partner, CEO – Retail, and CEO – EMEA at ANAROCK Group.
