Indian retail leasing surges 69% to record 5.7 million sq. ft in H1 2025, mall supply up 165%

• 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.

^Notes:

^{1. Data for both parameters pertains to the top 7 cities (Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and Pune). 2. Gross leasing includes real estate space leased in malls, high streets and retail developments. Numbers rounded off to nearest one decimal place.}

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. 

“Looking at the quarterly trends, fashion & apparel and food & beverage continued to be the leading retailer categories, contributing 33% and 22% respectively to the gross leasing total during April-June quarter. Unlike past trends, jewellery emerged as the third leading category, surpassing Entertainment, which typically used to be amongst the top three retailer categories until the first quarter of 2025. From a 16% share in gross leasing in Q1 2025, the share of Entertainment has dwindled to 6% in Q2 2025. Jewellery retailers commanded a 9% share in gross leasing with 0.23 million sq. ft of prime retail space consumed in the second quarter. While leasing in this category was largely dominated by indigenous brands opening new stores, mainly in southern cities of India, this quarter also saw a couple of European jewellery brands open new stores in Delhi NCR” said Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL. 

“While domestic retailers command an 85% market share in Q2 2025, the 15% international presence represents 0.4 million sq. ft. of prime retail space with 13 new global entrants—7 in F&B alone. Bengaluru, contributing nearly a quarter of national retail leasing and dominating jewellery and home furnishings expansion, exemplifies this trend as it partnered with Delhi NCR to capture 46% of Q2’s total leasing volume. India's strategic position for retail expansion is evidenced by international brand entry more than doubling yearover-year in H1 2025, driven by the perfect confluence of young demographics, rising disposable incomes, and premium consumption preferences that are particularly attractive in the current global economic landscape." Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL. 

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.

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 16,000 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.com