• H1 2025 has already achieved 70% of 2024’s total annual leasing volume (8.1 million sq. ft), pointing to exceptional year-end projections.
• Bengaluru and Delhi NCR dominated with 46% of total Q2 leasing, with Delhi NCR strong in F&B while Bengaluru saw growth in jewellery and home furnishings.
• Jewellery (9% share) has overtaken entertainment as the third-leading retail category, while entertainment dropped from 16% in Q1 to just 6% in Q2 2025.
• 13 new international retailers entered India in Q2 2025 alone, with 7 in F&B, signalling India’s growing importance in global retail expansion strategies.
• 5.9 million sq. ft. of new retail space expected in H2 2025 across Delhi NCR, Bengaluru, Hyderabad, and Pune, positioning 2025 to exceed 10 million sq. ft in annual leasing
• Local retailers commanded 85% of Q2 leasing activity, demonstrating the strength of India’s homegrown retail ecosystem alongside international interest.

MUMBAI, JULY 30, 2025 – India’s retail sector is undergoing fast-paced expansion as both domestic and foreign retailers widen their footprint across major markets. In H1 2025 (January to June), India’s top 7 cities witnessed 5.7 million sq. ft of retail space take-up, registering a remarkable 69% year-on-year (Y-o-Y) growth. Q2 2025 (April-June) noted 2.6 million sq. ft. of leasing, indicative of 17% Y-o-Y growth over Q2 2024. However, Q2 2025 leasing was down by 15% compared to the preceding quarter (January-March) of 2025. It is the high gross leasing of 3.1 million sq. ft in January-March period that helped the H1 2025 leasing volume attain a strong double digit YoY growth over H1 2024.

The quarterly decline in Q2 2025 leasing is a short-term blip, attributed to supply constraints as the second quarter of 2025 remained bereft of any major completions, except one new mall in Hyderabad. Despite this scenario, a 165% YoY growth in new mall supply was noted in H1 2025 as sizeable mall supply across Mumbai, Delhi NCR and Hyderabad came on the block in the first quarter. Interestingly, the first half of 2025 has already achieved 70% of last year’s annual leasing volume which stood at 8.1 million sq. ft.

Across the top 7 cities, Bengaluru and Delhi NCR together contributed 46% to the overall gross leasing volume for Q2 2025. While food and beverage as a category remained popular in Delhi NCR in terms of space takeup, jewellery and home furnishings retailers expanded steadily in Bengaluru during this period.

Hyderabad recorded nearly 0.5 million sq. ft. of retail space take-up primarily due to a new mall completion. Mumbai maintained its leasing momentum with ~0.5 million sq. ft leased across the city’s top malls and prominent high streets. Cities such as Chennai and Kolkata witnessed a slight uptick in retail spaces leased as compared to Q1 2025, whereas the retail leasing activity in Pune remained moderate. 

Nearly 5.9 million sq. ft of new retail supply to become operational in the second half of 2025 and will be spread across upcoming shopping malls in Delhi NCR, Bengaluru, Hyderabad and Pune and will support the entry and expansion of retailers in the near term. With these new additions to the retail stock, the gross leasing activity is expected to reach new heights and cross 10 million sq. ft annual mark in 2025.