India’s jewellery retail sector is witnessing a major transformation, with large-format stores emerging as a key growth driver in organised retail leasing, said CBRE South Asia Pvt Ltd in its latest report.
According to CBRE’s report titled “All That Glitters: Jewellery Brands Recast India’s Retail Footprint”, released at the Phygital Retail Convention 2026, the share of large-format jewellery stores exceeding 8,000 sq. ft. rose sharply from 14% in 2019 to 50% in 2025.
The report said jewellery retail is increasingly shifting from a transaction-led business to an experience-driven category.
Leading jewellery brands are moving away from conventional 1,500-2,500 sq. ft. outlets towards large-format “experience centres” featuring VIP bridal lounges, augmented reality-based virtual try-on zones, personalised consultation rooms and dedicated galleries for premium collections.
Jewellery Emerges As Premium Retail Anchor
CBRE noted that new entrants and regional brands in tier-II and tier-III cities are also leasing large-format spaces comparable to established national jewellery chains.
CBRE South Asia Chairman & CEO India, South-East Asia, Middle East & Africa, Anshuman Magazine said the rapid expansion of experience-led jewellery stores reflects a structural shift in the retail sector.
jewellery is increasingly emerging as a premium anchor category that enhances mall positioning, attracts affluent consumers and strengthens long-term asset value, he said.
The report highlighted that jewellery’s share in organised retail leasing increased from 2% in 2019 to 8% in 2025, making it one of the top three demand drivers in India’s retail market after fashion & apparel and food & beverage.
Leasing Activity Doubles
Jewellery retail leasing absorption doubled from 0.4 million sq. ft. in 2024 to 0.8 million sq. ft. in 2025.
Hyderabad, Chennai, Bengaluru and Delhi-NCR accounted for a majority of the demand, with Hyderabad’s share alone increasing from 15% in 2024 to 31% in 2025.
Hyderabad, Chennai, Delhi-NCR, Bengaluru and Mumbai together contributed more than 90% of total jewellery leasing activity during 2025.
Rise Of Lab-Grown Diamonds
The report also pointed to changing consumer preferences within the jewellery segment.
While fine jewellery continued to account for 72% of leasing activity in 2025, leasing by lab-grown diamond (LGD) brands increased from 5% in 2024 to 8% in 2025.
CBRE India Managing Director – Leasing Ram Chandani said LGDs are gaining traction among Gen Z and millennial consumers due to ethical sourcing and pricing that is 60-80% lower than natural diamonds.
Jewellery retailers are also increasingly adopting multi-format strategies, including large-format flagship stores, boutique mall outlets and shop-in-shop formats, while D2C jewellery brands are expanding aggressively into physical retail locations.