India’s retail sector recorded 3.2 million sq ft of leasing in Q3 2025 (July–September) across the top seven cities, marking a 65% year-on-year growth, according to the report. Delhi-NCR accounted for 35% of the total gross leasing volume, driven by strong space uptake in two newly built malls. With the latest quarterly numbers, retail leasing for the first nine months of 2025 has touched 8.9 million sq ft.
The analysis by JLL covered Delhi-NCR, Hyderabad, Mumbai, Bengaluru, Kolkata, Chennai and Pune.
With 4.7 million sq ft of new retail supply scheduled for completion in the final quarter of the year, overall retail leasing activity is expected to surpass earlier estimates of around 10 million sq ft by the end of 2025, the report said.
Both shopping malls and high streets were at the forefront of new leasing momentum, and this quarter witnessed 53% and 41% share of leasing in these formats, respectively.
NCR and Hyderabad lead retail leasing momentum
Across the top seven cities, Delhi NCR and Hyderabad led the gross leasing momentum in Q3 2025. Delhi NCR (35%) and Hyderabad (12%) emerged as clear market leaders in the city tally as demand for retail leasing in these markets increased significantly compared to the previous quarters. While shopping malls comprised the lion’s share in gross leasing in Delhi NCR, high streets garnered immense interest for expansion by retailers in Hyderabad.
Apart from Delhi NCR and Hyderabad, Mumbai recorded 0.6 million sq. ft. of retail space take-up, followed by Bengaluru at 0.4 million sq. ft. Cities such as Kolkata and Chennai witnessed steady demand momentum in comparison to previous quarters. Pune witnessed a slight dip in retail spaces leased as compared to Q2 2025.
“During the July-September quarter, fashion and apparel (35%), food and beverage (16%), and daily needs and grocery (11%) sustained robust leasing momentum for retail space absorption. Leading brands within these sectors continued to drive demand across the broader retail landscape in major cities, with domestic market leaders spearheading this growth. The third quarter of 2025 saw heightened demand from daily needs and grocery retailers, who typically require substantial space allocations and frequently serve as anchor tenants in premium retail developments,” said Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.
Direct-to-consumer (D2C) brands have been making significant investments in their click-and-mortar strategies, progressively expanding their physical store presence across various retail formats, particularly in fashion and apparel, jewellery and beauty, and cosmetics and wellness categories. Looking ahead, D2C brands are positioned to capture an increasingly larger portion of the overall gross leasing activity, he said.
Luxury retailers lease 0.2 million sq ft from January to September, up 19% year-on-year
The strong presence of domestic retailers in retail space demand continues unabated, with indigenous brands leasing 2.6 million sq. ft in Q3 2025, representing a 76% Year-on-Year increase compared to Q3 2024. Foreign brands accounted for a 19% share of leasing activity this quarter. During the nine-month period from January to September 2025, luxury retailers leased 0.2 million sq. ft of retail space, marking a 19% increase over the corresponding period in the previous year, said Rahul Arora, Head – Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
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While few new luxury retailers have entered India in 2025 thus far, the growth trajectory in leased area demonstrates strong market fundamentals and the availability of investment-grade retail infrastructure that these brands actively seek for their flagship stores, he said.
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