India retail: 8.1 million sq. ft leased in 7 cities (2024)

MUMBAI, JANUARY 25, 2025: During the calendar year 2024, 8.1 million sq. ft of area was leased by retailers in shopping malls and prominent high streets across India’s top seven cities (Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Pune, and Hyderabad), according to JLL India. 2024 witnessed new retail space additions of nearly 1.7 million sq. ft across 7 retail developments. Despite limited infusion of new spaces of superior quality, momentum in retail sector’s gross leasing remained unaffected as retailers continued to expand footprint across retail formats throughout the year, with gross leasing moderating by only 6% over 2023.

Bengaluru accounted for 34% share of the total leasing activity, followed by Delhi NCR (14%), and Mumbai (14%). The concentration of 62% of total retail space take-up in these three Indian megalopolises underscores the strong consumption demand in prime retail centres and key high streets in these markets. With a significant 2.8 million sq. ft share in leasing activity, Bengaluru, alone, surpassed the combined leasing volume of Delhi-NCR and Mumbai. Notably, the share of other cities such as Hyderabad and Chennai increased from 10% and 5% of the leasing volume in 2023 to 14% and 10% at the end of 2024, respectively.

“2023 witnessed a five year high as new retail supply of 6.2 million sq. ft became operational across the top 7 cities. The addition of 16 new retail developments in 2023 supported the expansion plans of retailers and helped in reaching gross leasing high of 8.7 million sq. ft in the year. However, the new supply in the retail sector in 2024 plunged by 73% y-o-y hampering the new retail space take-up by interested retailers looking for quality retail spaces. Despite this decline in new retail supply, the leasing moderated only by 6% over 2023 to 8.1 million sq. ft. Retailer appetite for prime retail locations remained firm throughout 2024 and categories such as Fashion and Apparel continued to amass the highest percentage share in the total retail leasing pie.” said Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.

In 2024, 27 new brands of international origin entered India, nearly doubling from 14 in 2023. In the past four years, 60 retailers of international origin have forayed in the country to cater to Indian consumers perpetual preference for global brands. The entry of these brands in 2024 represents a 45% share of the total international brands that entered India since 2021. Beauty, Cosmetics and Wellness, Footwear, Bags and Accessories and Fashion and Apparel were the top three retailer categories to set retail footprint in the country in 2024.

“India has attracted significant attention from international retailers, who have steadily increased their efforts to establish a presence in the country over the past four years. In 2024, 27 international brands entered the Indian market, with 56% originating from the EMEA region. French and Italian retailers, in particular, made notable inroads. Delhi NCR emerged as the preferred location for over half of these international retailers to open their inaugural stores, followed by Mumbai. The luxury retail sector maintained its strong momentum, with high-end brands leasing approximately 190,000 square feet of space in 2024. Luxury retailers continue to show keen interest in expanding their footprint in India, primarily within the Fashion and Apparel segment, which accounted for nearly half of the total luxury space leased during the year. These trends underscore India's growing appeal as a retail destination and highlight the increasing sophistication of its consumer market.” said Rahul Arora, Head (Office Leasing & Retail Services), and Senior Managing Director – Karnataka, Kerala, India, JLL.

Despite continued interest from international retailers, domestic retailers dominated the gross leasing with more than 80% share, leasing approximately 6.5 million sq. ft in 2024. Direct-to-Consumer (D2C) brands also contributed to 8% share in total leasing, comprising 0.6 million sq. ft retail spaces leased in physical retail destinations during the year. Both malls and high streets remained equally popular for India's D2C brands seeking to establish a connect and brand identity with the discerning consumers spoilt for choice.

Basis the current construction pipeline of upcoming retail developments, JLL India expects the top 7 Indian cities to witness the infusion of nearly 9 million sq. ft of new retail spaces in 2025. This bodes well for the continued growth of the retail sector due to optimism in India’s retail sector. Going forward, we expect gross leasing volume in 2025 to surpass the 2023 levels of 8.7 million sq. ft easily on the back of continued interest from international brands coupled with healthy space take up by domestic retailers.

JLL is India’s premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of over 15,000 professionals. The Firm provides investors, developers, local corporates, and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education. For further information, please visit jll.co.in.