Leasing of retail space across malls and high streets in the top seven cities rose by more than 50 per cent to a three-year high in 2025, with gross leasing volumes increasing to 12.5 million sq ft from 8.1 million sq ft a year earlier. Delhi NCR led leasing activity with 3.02 million sq ft, followed by Bengaluru at 2.97 million sq ft, Hyderabad at 2.91 million sq ft, and Mumbai at 2.1 million sq ft, a JLL report showed.
Kolkata recorded leasing of 0.65 million sq ft, Chennai 0.59 million sq ft and Pune 0.24 million sq ft, it said.
“The retail sector hit a three-year high last year as gross leasing volumes surged 54% year-on-year to 12.5 million sq ft, signalling renewed confidence among retailers despite global economic uncertainty,” the JLL report said.
The seven Indian cities include Delhi-NCR, Hyderabad, Mumbai, Bengaluru, Kolkata, Chennai, and Pune.
Gross leasing includes retail space in shopping malls, high streets, and prime retail developments. Of the total leasing in 2025, shopping malls accounted for 45% of the total leasing activity, while high streets commanded a dominant 48% share, according to a report by JLL India.
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JLL said that after moderating in 2024, retail leasing rebounded sharply in 2025, driven by rising discretionary spending, premium brand expansion, and new supply.
The fourth quarter of 2025 emerged as the strongest, recording 3.6 million sq ft of leasing, JLL said. During the year, around 6.3 million sq ft of new retail supply was added, enabling aggressive store rollouts across major urban markets.
Delhi NCR, Bengaluru and Hyderabad emerged as the top three retail markets, together accounting for 71% of total leasing. Delhi NCR and Bengaluru each contributed 24% of leasing activity, followed closely by Hyderabad at 23%. While shopping malls dominated leasing in Delhi NCR and Hyderabad, Bengaluru stood out for its strong preference for high-street locations. Mumbai accounted for 17% of leasing, while Chennai, Kolkata and Pune saw limited activity due to supply constraints.
As for retail stock, the country’s top seven cities accounted for nearly 92 million sq ft of mall stock in 2025, the report said.
“During 2025, Delhi NCR, Hyderabad, and Mumbai witnessed the launch of 15 shopping malls, collectively contributing to the nation’s overall mall inventory. As of the end of 2025, the mall stock in the top seven cities stood at nearly 92 million square feet,” the report said.
The availability of premium institutional-grade mall space encouraged retailers to accelerate store launches in prime locations, it said.
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Domestic brands, D2C players and F&B drive expansion
Demand from domestic retailers remained the backbone of the market, accounting for 82% of total leasing during the year. Retail space take-up by Indian brands crossed 10 million sq ft in 2025, up from 6.5 million sq ft in 2024. According to JLL, domestic brands expanded across both malls and high streets, with a growing appetite for larger store formats.
“While fashion and apparel continued to lead leasing with a 34% share, food and beverage has steadily gained ground, rising to 20% in 2025,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. He said that direct-to-consumer brands have accelerated their physical expansion, leasing 0.9 million sq ft during the year, supported by strong growth in categories such as fashion, beauty, jewellery and wellness.
Foreign brands also stepped up their presence, recording 36% year-on-year growth in leased space, with 29 new international brands entering India, the highest in five years. “The structural strength of India’s retail sector and rising brand awareness will continue to support foreign brand entry,” said Rahul Arora, Head – Office Leasing and Retail Services, Senior Managing Director, India, JLL.
Retail real estate market outlook
Looking ahead, JLL noted that nearly 47 million sq ft of mall space is under construction across the top seven cities and expected to be operational by 2030.
“With fast-evolving consumer preferences and increasing consumption spending, developers will need to keep pace and incorporate tech, hospitality and experience-related elements at the construction stage for the development pipeline to be future-ready. The Indian retail sector has witnessed $2.3 billion in institutional investment during the last 5 years. Going forward, it is only the future-ready retail assets that will attract more institutional capital,” the report said.