India’s retail sector saw an exceptional rebound in 2025, achieving its highest gross leasing activity in three years. After 8.7 million sq. ft in 2023 and a slight dip to 8.1 million sq. ft in 2024, the market surged with a 54% year-on-year increase. This remarkable growth highlights retailers’ confidence in India’s economy and their aggressive expansion plans across major cities. Rising discretionary spending and a resilient economy are supporting this boom, particularly for offline retail formats where premium brands are attracting loyal customers.
Supply Drives Leasing Growth
The expansion in retail leasing was made possible by significant additions to retail supply. In 2025, India added 6.3 million sq. ft of new retail space, helping retailers open more stores and contributing to the growth in leasing volume. Delhi NCR, Hyderabad, and Mumbai together launched 15 new shopping malls, adding to the country’s overall retail inventory. By the end of the year, mall stock in the top seven cities reached nearly 92 million sq. ft.
Premium, institutional-grade retail space attracted retailers to prime locations, with shopping malls capturing 45% of total leasing and high streets commanding 48%.
Top Cities Lead the Expansion
Among India’s leading urban markets, Delhi NCR, Bengaluru, and Hyderabad were the biggest contributors to the leasing surge. Delhi NCR and Bengaluru each accounted for 24% of total leasing, followed closely by Hyderabad at 23%. Mumbai contributed 17%, while Kolkata (5%), Chennai (5%), and Pune (2%) saw more modest activity due to limited new supply.
In Delhi NCR and Hyderabad, shopping malls were the preferred choice for retailers, while high street locations dominated in Bengaluru, reflecting local market dynamics.
Fashion, F&B, and D2C Brands Drive Leasing
Fashion and apparel remained the largest category in 2025, accounting for 34% of total leasing, though slightly down from 41% in 2023. Food & beverage (F&B) gained ground, rising from 16% to 20%, becoming a significant driver of retail space demand.
Direct-to-consumer (D2C) brands are rapidly expanding their physical presence, contributing 0.9 million sq. ft to total leasing and recording 48% year-on-year growth. Popular categories include fashion, jewellery, beauty, cosmetics, and wellness, reflecting changing consumer behaviour and the importance of physical retail in brand-building.
“Domestic retailers drove 82% of total leasing in 2025, expanding into both high streets and malls with large-format stores,” said Dr Samantak Das, Chief Economist, JLL India. He added that the robust growth of domestic brands has been complemented by foreign brands, which saw a 36% year-on-year increase. Notably, 29 new international brands—including Bershka, Nespresso, COS, Lego, and NEXT—entered India in 2025, the highest in five years, according to Rahul Arora, Head – Office Leasing & Retail Services, JLL India.
Structural Shift in Retail Leasing
Experts say the 2025 leasing boom reflects a deeper structural shift rather than a short-term spike. Retailers are increasingly favouring organized retail with high-quality infrastructure and professional mall management. Superior quality mall stock, either institutionally owned or premium single-owner, now accounts for about 44% of total retail mall space across the top seven cities.
Looking ahead, a pipeline of more than 47 million sq. ft of retail space is under construction and is expected to be operational by 2030. Nearly 20 million sq. ft of this upcoming supply will be premium-grade, ensuring that future developments meet international standards.
Future-Ready Retail Must Embrace Experience
With evolving consumer preferences, developers will need to integrate technology, hospitality, and experiential elements into new retail projects. The combination of strong economic fundamentals, rising consumer spending, and the premiumisation trend means that demand for high-quality retail spaces is expected to continue. Over the past five years, India’s retail sector has attracted USD 2.3 billion in institutional investment, and only future-ready assets are likely to draw similar interest going forward.
As Indian retail continues to grow, brands—both domestic and international—will look for spaces that not only meet operational needs but also deliver experience, convenience, and visibility in prime locations. The 2025 leasing surge is a clear signal that the country’s retail market is ready to embrace a new era of growth and opportunity.
