Jewellery emerges among top three drivers of retail leasing in India after fashion, F&B: Report
New Delhi, May 14
Jewellery has emerged as the third-largest demand driver in India's organised retail market after fashion and apparel and food and beverage, with its share in total retail leasing rising from 2 per cent in 2019 to 8 per cent in 2025, according to a report by CBRE.
According to the report, the growth comes amid a shift in retail strategy, with jewellery brands increasingly moving towards larger stores and experience-based showrooms. Large-format stores above 8,000 sq. ft. accounted for 50 per cent of jewellery retail leasing in 2025, up from 14 per cent in 2019.
The sector also recorded a sharp increase in leasing by jewellery brands also increased significantly during the year. "Absorption by jewellery brands doubled from 0.4 million sq. ft in 2024 to 0.8 million sq. ft in 2025," with Hyderabad, Chennai, Bengaluru, Delhi-NCR and Mumbai accounting for most of the demand.
Jewellery retailers are moving beyond traditional small outlets and are opening larger stores designed as experience centres, with private bridal lounges, virtual try-on facilities and dedicated spaces for premium collections, the report stated.
The category mix is also changing. While fine jewellery continued to dominate with 72 per cent of leasing in 2025, lab-grown diamond brands increased their share from 5 per cent in 2024 to 8 per cent in 2025, reflecting changing consumer preferences.
"The tenant mix within the jewellery category is also evolving. Fine Jewellery continued to dominate at 72% of leasing in 2025, but the share of leasing by Lab-Grown Diamond (LGD) brands rose from 5% in 2024 to 8% in 2025, reflecting a broader shift in consumer preferences," the report noted.
Brands are also adopting multiple retail formats, including large flagship stores, boutique outlets in malls and shop-in-shop models, to target different consumer segments.
While metro cities continue to contribute most of the sector's revenues, tier-II and tier-III cities are emerging as stronger profitability centres due to lower operating costs and higher average transaction values.
— ANI
Reader Comments
Interesting shift—from 2% to 8% leasing share in just 6 years. But let's be real: Are these huge showrooms sustainable? Many Indians still prefer buying gold from trusted local shops with decades of legacy. CBRE report sounds like it's pushing mall-heavy retail narrative. Tier-2 cities as profit centres makes sense though—less rent, more genuine buyers.
Lab-grown diamonds at 8% share? That's fantastic! 🇮🇳 We need more eco and budget-friendly options. My wife and I bought a lab-grown engagement ring last year—same sparkle, half the price. But the article should mention: Is this driven by NRIs or domestic buyers? Also, virtual try-on for jewellery? Sign me up for that tech! 😂
As a Delhi-NCR resident, I've seen these new "jewellery experience centres" in malls. Bridal lounges? It's like they're trying to be a wedding planner, not just a jewellery store! But honestly, the old-school market like Dariba Kalan still has more charm and better prices. This trend might work in cities but not in smaller towns where trust and relationships matter more.
Impressive data. From 0.4 million to 0.8 million sq. ft absorption in a year? That's huge. India's love for gold is legendary, but lab-grown diamonds at 8% is a meaningful shift. I wonder if foreign brands are also entering this space. The tier-2/3 city profitability angle is smart—often overlooked in the noise about metros. Good read.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.