If you’re eyeing commercial real estate in 2025, you’re likely weighing office versus retail. The short answer: both can work- if you buy where real demand, infrastructure, and leasing depth intersect. Below is a crisp, data-driven guide to help you choose the right asset for your goals (yield, stability, exit).
The 2025 backdrop at a glance
- Offices are firmly back. India recorded 33.7 mn sq ft of Grade-A office uptake in H1 2025 (+13% YoY), with Q2 alone at 17.8 mn sq ft. Technology and GCCs (global capability centers) continue to anchor demand.
- Retail is resilient and expanding. H1 2025 saw ~3.2 mn sq ft of retail space take-up across Tier-I cities, with a healthy new-supply pipeline; 2024 ended strong too, and outlooks point to further strengthening in 2025.
- High streets remain in favor. Limited mall additions and strong occupier appetite kept main-street leasing elevated through 2024; yields have been broadly stable into 2025.
Which performs better—office or retail?
Offices: the case for stability and institutional demand
Why investors like it
- Deep tenant universe (tech, GCCs, BFSI) and steady large-deal activity; tech alone drove ~40% of H1 2025 Grade-A leasing.
- Transparent performance data and maturing strata/ fractional ecosystems—Grade-A strata stock already exceeds 200 mn sq ft in top cities (28% of total Grade-A), improving liquidity for smaller tickets.
Watch-outs
- Fit-out cycles and capex between tenancies; vacancy risk if you choose fringe micro-markets or weak assets.
Retail: the case for higher cash yields and brand-led upside
Why investors like it
- Strong H1 2025 absorption and robust brand expansion pipelines; 27 international brands entered India in 2024, with momentum carrying forward.
- Footfall magnets (transport hubs, sports/entertainment districts, prime high streets) can drive above-market rentals; main streets have led leasing as malls stayed supply-constrained.
Watch-outs
- Operator risk (brand mix matters), micro-location sensitivity, and polarization: weaker/smaller malls struggle, while large, well-run formats thrive.
What does this mean for 2025 capital?
- If you want defensive rentals with long leases, focus on Grade-A offices in proven employment hubs. India is tracking 65–70 mn sq ft of gross office leasing for full-year 2025, reinforcing depth.
- If you want yield with visibility of footfall, pick high-street/experience-led retail in districts tied to airports, expressways, or event venues where demand is structural—not just cyclical.
Where the infrastructure tailwind is strongest right now: Dwarka (Delhi NCR)
On August 17, 2025, the Delhi section of the Dwarka Expressway and key stretches of UER-II were inaugurated—projects worth ~₹11,000 crore designed to decongest NCR and improve airport/outer-Delhi connectivity. That’s catalytic for both daily-need retail and office catchments on the west side of Delhi.
One mixed-use precinct set to benefit is The Omaxe State, Dwarka—an integrated sports-anchored development coming up on ~50 acres under a PPP with DDA, featuring a 30,000+ seat outdoor stadium, an indoor arena, and a curated retail boulevard. Investment outlay announced ranges around ₹2,100–2,500 crore, with completion timelines indicated around 2027 in media and developer communications. For retail investors, large event-led footfall plus improved arterial access is a potent combo.
River Edge Realtors actively deals in select units at The Omaxe State, Dwarka. If you’re considering retail or compact office plates that can ride this infrastructure+events wave, ask us for today’s pre-lease options and payment plans.
5-minute decision guide: Office vs Retail (2025)
- Your risk appetite
- Prefer lower volatility and institutional-grade tenants? → Office in top tech/BFSI corridors. [H1 2025 (The first half of the year) office momentum is strong.]
- Comfortable curating brand mix to capture footfall economics? → Retail on high streets / event-led districts.
- Prefer lower volatility and institutional-grade tenants? → Office in top tech/BFSI corridors. [H1 2025 (The first half of the year) office momentum is strong.]
- Ticket size & ownership style
- ₹75L–₹3Cr, passive strata with professional management → Strata office or curated high-street shop. (Strata stock/liquidity expanding.)
- ₹75L–₹3Cr, passive strata with professional management → Strata office or curated high-street shop. (Strata stock/liquidity expanding.)
- Location catalyst
- Choose hard catalysts: expressways, airports, or sports/entertainment hubs (Dwarka Expressway + Omaxe’s sports district is a live example).
- Exit clarity
- Offices: depth of corporate demand + steady deal sizes aids resale.
- Retail: prioritize A-grade streets/destination assets to avoid the “ghost-mall” trap.
- Offices: depth of corporate demand + steady deal sizes aids resale.
Sample strategies (what we’re shortlisting for clients)
- Core-plus office: Grade-A strata floors near major GCC clusters (Bengaluru, Hyderabad, NCR). Tech remains the largest demand driver in 2025.
- Experience-led retail: High-street units with frontage/signage in sports-anchored or airport-corridor zones. In NCR-west, the Dwarka Expressway + UER-II combo materially improves access and catchments.
- Mixed-use edge: Retail/office micro-plates within The Omaxe State, Dwarka to capture event-day spikes plus daily-need footfall from surrounding residential and institutional uses, backed by PPP scale and defined sports programming.
Bottom line
- Office in 2025 = steadier rentals, deeper tenant pools; best in top-tier, Grade-A supply.
- Retail in 2025 = higher yield potential where footfall is structural (prime streets, transit and event districts).
- NCR investors should keep a close eye on Dwarka’s transformation post-expressway inauguration—and on The Omaxe State as a rare, sports-anchored mixed-use opportunity with a credible PPP framework and defined event infrastructure.
Talk to River Edge Realtors
Share your budget (₹75L to ₹5Cr+), target yield, and holding period. We’ll send you two shortlists:
- A Grade-A office plate with live demand comps, and
- A high-street retail unit in Dwarka’s emerging sports district (The Omaxe State) with projected rents and conservative 5-year cashflow.
With the right guidance, you can secure a commercial asset that balances steady income with long-term appreciation. Let’s find your best-fit investment today.