Bon Appétit

India’s F&B sector has emerged as the cornerstone of the country’s retail real estate growth, with 4 million sq. ft of leasing activity across seven (Mumbai, Delhi NCR, Chennai, Hyderabad, Kolkata, Hyderabad and Pune) major cities since 2023. This remarkable expansion underscores the sector’s important role in driving the country’s broader retail transformation, which has witnessed nearly 18.6 million sq. ft of new shopping mall space added over the past five years, according to the JLL report titled "Bon Appétit-The Food and Beverage Playbook for Indian Real Estate'".

Bengaluru has established itself as the undisputed F&B leader, securing more than one-third share of total leasing volume, with Indiranagar remaining a preferred destination for operators. Mumbai and Delhi NCR follow as key markets, collectively contributing to a sector that demonstrates resilience and robust growth potential.

The sector’s growth trajectory has attracted significant attention from international operators, with over 20 new global F&B brands entering India since 2023. US-based brands led international expansion, while Delhi NCR and Mumbai remain hotspots for global brands establishing their maiden Indian presence. Multi-cuisine establishments dominated the landscape with a 41% share of leasing activity, reflecting India’s evolving palette influenced by travel and global influence.

High streets have emerged as the preferred destination for F&B operators, accounting for 54% of total gross leasing across top cities. This preference stems from organic expansion opportunities provided by high streets compared to traditional shopping mall formats.

The retail real estate sector has witnessed unprecedented growth, with 18.6 million sq ft of new shopping mall space added across the top 7 cities over the past five years, bringing total operational Grade A stock to 88.7 million sq ft. Mumbai, Delhi NCR, and Bengaluru dominate the landscape, accounting for 63% of existing organized retail assets.

Despite global uncertainties, retail leasing has remained robust with over 22 million sq. ft absorbed between 2023 and H1 2025. Shopping malls led the leasing activity with 52% share. During this period, more than 60 new global retailers—primarily from EMEA and America—opened their first Indian stores, choosing Delhi NCR and Mumbai as preferred entry points. In 2023, the retail sector reached a milestone with India’s first retail REIT—Nexus Select Trust—, significantly boosting institutional participation. Between 2018 and H1 2025, approximately USD 2.5 billion in institutional capital flowed into the sector across 22 deals, with 30 institutionally owned developments now spanning 20.6 million sq ft across the top seven cities.

The upcoming retail stock comprising shopping malls and prime retail developments shows strong momentum with a robust pipeline of proposed and under construction assets through 2030. Of the total development pipeline, nearly 6 million sq ft of space will be dedicated to F&B. As per current leasing trends, this upcoming supply will cater to nearly 38-40% of total F&B demand. However, given the fact that high streets cater to more than 50% of total F&B leasing, the potential for F&B leasing on high streets will be manifold in the next 3 years. The growing demand for amenity retail in business parks is also a strong indication of F&B becoming seamlessly integrating with other retailer categories.

This combination of strong domestic consumption, strategic international retailer entry, and growing institutional confidence positions India's F&B sector for sustained expansion in the coming decade and contribute to incremental real estate space take-up.

For more insights, read the report.