India’s Luxury Retail Market Surges 90% in Q1 2025 as Global Brands Expand Presence

India’s luxury retail landscape is undergoing a remarkable transformation. In Q1 2025 alone, leasing activity in the luxury and bridge-to-luxury segment grew by a staggering 90% compared to the same period last year. Leasing by luxury brands touched 1,80,000 square feet, underlining a sharp rise in demand from global and domestic players alike, all eager to tap into India’s expanding premium consumer base.

Changing Consumer Demographics Fuel Expansion

A key driver behind this expansion is the evolving Indian consumer profile. Luxury brands are recalibrating their strategies, moving beyond legacy customers to target a broader and younger demographic. This includes not only the metros but also new-age urban centres that reflect changing lifestyle aspirations.

International Brands Enter Indian Cities

The Indian luxury ecosystem saw several marquee international entries in Q1 2025. German clockmaker Qlocktwo opened in Bengaluru, Jacadi Paris, a French children’s fashion brand, entered India, and women’s fashion label Maje debuted in Mumbai. Meanwhile, Bershka – the Spanish fast-fashion brand – and premium coffee lifestyle brand Nespresso launched stores in Delhi.

These entries reinforce the belief that India is now on the radar of most international luxury players, especially as Asia-Pacific emerges as a key growth region.

Read More: Luxury Shopping Beyond Metros: How E-commerce is Redefining Shopping in Small-Town India.

Surge in Rentals and Demand for Prime Retail Spaces

With this surge in demand, prime retail malls are witnessing a rental uptick. Strong sales performance by luxury tenants has empowered landlords to command higher rents. Notably, brands in the bridge-to-luxury segment, particularly in categories such as beauty and accessories, are aggressively taking up space in newer malls and emerging premium locations.

India’s High-Income Households to Double by 2030

According to projections, the number of high-income households in India is expected to grow from 15 million in FY23 to 30 million by 2030. This demographic shift underpins the bullish outlook for the luxury sector. The luxury market in India is expected to grow 3.5 times by 2030, reaching an estimated ₹8,500–₹9,000 crore (approximately US$1.01–1.06 billion).

Conclusion

India is poised to remain among the top 5 luxury markets in the Asia-Pacific region. While legacy players continue to focus on metros, new entrants are eyeing India’s aspirational population across Tier-1 and Tier-2 cities. This momentum reflects not just a retail evolution but a broader socio-economic shift.

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