Premium retail space in Gurgaon and the Delhi-National Capital Region (NCR) is fast disappearing, with vacancy rates in top-tier Grade A and A+ malls falling to an all-time low of just 0-2%, according to a new real estate report.
The ‘Leasing Trends in Malls Across Top Metropolitan Cities in India’ report, released on Wednesday by ANAROCK and IMAGES Group, stated that tight supply is pushing up rents. Grade A+ mall spaces in Delhi-NCR have seen rental rates climb by 8-12 per cent compared with last year.
In Gurgaon, the report noted, strong demand and premium positioning have pushed Common Area Maintenance (CAM) charges to the higher end, with 77.8% of deals falling within the Rs 40-60 per sq ft per month range.
Reflecting this leasing momentum, US clothing brand American Eagle recently leased a 3,874 sq ft vanilla store at Ambience Mall in Gurgaon.
Across NCR, vanilla stores — smaller in-mall retail outlets usually located near larger ‘anchor’ stores — in Grade A/A+ assets currently command average rents of Rs 400-450 per sq ft.
The report highlighted a clear “flight to quality” among retailers, with top-tier malls capturing a disproportionate share of the demand. To capitalise on this sustained momentum, it noted, developers are aggressively scaling up, with an estimated 19 million sq ft of new retail supply slated to enter the NCR market between 2026 and 2031.
“On a year-on-year basis, Delhi-NCR’s Grade A+ malls have witnessed a stronger rental appreciation of 8-12%, outperforming Grade A assets at 6-8%, indicating a widening gap driven by superior footfalls, tenant productivity, and asset positioning,” Anuj Kejriwal, Retail CEO of the ANAROCK Group, said.
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He noted that the substantial 19 million sq ft pipeline planned for the region underscores the long-term confidence developers have in the Indian consumer’s appetite for organised retail.
Landlords gain pricing power
This constrained supply environment has shifted negotiating power firmly in favour of landlords, the report noted. Consequently, tenant churn remains minimal, allowing developers to adopt a performance-led leasing approach that prioritises high-yielding brands to maximise revenue, it stated.
Delving into the economics of store formats in the capital region, the report highlighted a deliberate cross-subsidisation strategy by mall operators. Large anchor stores are leased at much lower rates of Rs 110-150 per sq ft, while vanilla stores drive most of the rental income.
These anchors serve primarily as footfall generators, enabling landlords to extract higher realisations from inline tenants and sustain overall asset performance.
Expanding retail
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Beyond traditional malls, the region is witnessing a significant surge in complementary retail formats, including integrated commercial hubs, Shop-Cum-Office (SCO) developments, and premium high streets. This diversification reinforces the NCR’s position as one of India’s most dynamic and scalable retail destinations, the report noted.
Recent major transactions in the NCR include large anchor leases by Zara (30,597 sq. ft.) and Levi’s (15,230 sq. ft.) at Pacific Mall in Delhi’s Tagore Garden. Additionally, Noida’s DLF Mall of India secured international footwear giant Foot Locker for a 13,731 sq ft mini-anchor space, alongside a 9,243 sq ft lease by F&B brand Cafeteria & Co.
Broader real estate momentum
The developments come as another Anaracok report (Residential Market Viewpoints Pan India Q1 2026) last month noted that the Delhi-NCR residential real estate market showcased robust annual growth driven by an unprecedented surge in luxury housing and steep price appreciation.
The NCR emerged as the clear leader in price growth among India’s top seven cities, recording a staggering 15% year-on-year appreciation. The average base selling price in the region climbed to Rs 9,620 per sq ft.
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This steep rise was fueled by a distinct shift towards premium properties, with luxury and ultra-luxury homes — priced above Rs 2.5 crore — accounting for a massive 54% of the region’s new project launches.
