Large-format jewellery stores accounted for 50 per cent of leasing activity in 2025, up from 14 per cent in 2019, as brands expand immersive retail formats with VIP lounges, AR try-ons and curated premium spaces
India’s organised jewellery retail market is witnessing a sharp shift towards larger, experience-led stores, with brands increasingly opting for expansive showrooms over traditional formats, according to a new report released by CBRE India on Thursday.
The report, titled “All that Glitters: Jewellery Brands Recast India’s Retail Footprint”, said the share of large-format stores exceeding 8,000 square feet in jewellery leasing rose to 50 per cent in 2025 from just 14 per cent in 2019.
The study was unveiled at the Phygital Retail Convention 2026 in Mumbai and highlighted how jewellery retailers are repositioning stores as experiential destinations rather than purely transactional outlets.
According to the report, brands are moving away from conventional 1,500–2,500 sq. ft. outlets and are increasingly developing larger “experience centres” equipped with VIP bridal lounges, augmented reality-powered virtual try-on zones, personalised consultation rooms and curated galleries for premium collections.
CBRE said jewellery has emerged as one of the top retail leasing demand drivers in 2025, alongside fashion and apparel and food and beverage categories. The sector’s share in total organised retail leasing increased from 2 per cent in 2019 to 8 per cent in 2025.
“The rapid expansion of large-format, experience-led stores signals a structural shift that is reshaping how brands engage with consumers and how developers design their tenant mix,” said Anshuman Magazine, Chairman and CEO India, South-East Asia, Middle East and Africa, CBRE.
“Jewellery is emerging as the definitive premium anchor, delivering strong revenue performance, enhancing destination stature, attracting affluent shoppers, and strengthening long-term asset value,” he added.
Leasing Activity Doubles
Jewellery leasing absorption doubled from 0.4 million sq. ft. in 2024 to 0.8 million sq. ft. in 2025, led by demand from cities such as Hyderabad, Chennai, Bengaluru and Delhi-NCR.
Hyderabad emerged as the largest contributor to jewellery leasing activity, with its share rising from 15 per cent in 2024 to 31 per cent in 2025. Chennai accounted for 27 per cent of leasing activity during the year, followed by Bengaluru at 14 per cent, while Delhi-NCR and Mumbai each contributed 10 per cent.
The report noted that developers are increasingly creating dedicated jewellery precincts within malls by offering reinforced vault infrastructure and specialised lighting systems tailored to jewellery retailers’ operational requirements.
Rise Of Lab-grown Diamonds
The report also pointed to changing consumer preferences within the jewellery segment. While fine jewellery continued to dominate with a 72 per centshare of leasing activity in 2025, leasing by lab-grown diamond brands increased from 5 per cent in 2024 to 8 per cent in 2025.
According to Ram Chandnani, lab-grown diamonds are gaining traction among younger consumers.
“LGDs have emerged as a significant trend, appealing to both Gen Z and millennial cohorts. By offering ethical transparency at a 60-80 per cent lower price point, brands in this category are making luxury more accessible to value-conscious, socially responsible consumers,” he said.
The report added that jewellery retailers are increasingly adopting multi-format leasing strategies, including flagship experience stores, boutique mall outlets and shop-in-shop formats within department stores.
Direct-to-consumer jewellery brands are also expanding aggressively into physical retail, targeting high-footfall locations such as mall atriums, transit hubs and affluent high streets.
While tier 1 cities continue to drive revenue growth, CBRE said tier 2, 3 markets are emerging as more profitable destinations for organised jewellery retailers due to lower operating costs and higher average transaction values.
