Leasing activity in India’s luxury retail grows by 90% Y-o-Y in Q1, FY25
India’s luxury retail market is experiencing record growth, with leasing activity increasing by 90 per cent Y-o-Y in Q1 FY25, according to a report by real estate consultancy CBRE. This rapid expansion is being fueled by the aggressive rollout of luxury and bridge-to-luxury brands in major cities.
Luxury brands leasing reached 180,000 sq ft during the quarter as global and domestic players moved swiftly to capture a larger share of India’s booming premium retail sector.
As consumer demographics continues to evolve, luxury brands are rethinking their strategies and expanding their brick-and-mortar presence to attract a broader customer base, says Anshuman Magazine, Chairman and CEO – India, Southeast Asia, Middle East & Africa, CBRE. While established players remain focused on metro areas, new entrants see India as a high-potential market. India is on track to remain one of the top five luxury markets in the Asia-Pacific region, he adds.
Several international luxury brands are entering India. French childrenswear brand Jacadi Paris and women’s fashion label Maje have launched stores in Mumbai. Meanwhile, Spanish fast-fashion giant Bershka debuted in Mumbai, and Swiss premium lifestyle brand Nespresso opened in Delhi, underscoring growing demand across segments.
Rising demand is driving up retail rents. Sales have risen sharply, allowing the company to increase rentals in its malls, says Pushpa Bector, Senior Executive Director, DLF Retail. Bridge-to-luxury brands in beauty and accessories are actively expanding into malls where they previously had no presence, she notes.
Interest in the market is high. Vivienne Westwood held its first fashion show in India, signaling strong momentum, informs Amit Pande, Aditya Birla Fashion and Retail. With high-income households expected to double by 2030, India’s luxury market could reach $85–90 billion, according to Bain & Company.
