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Bengaluru led the way in the first quarter of 2025, when the retail sector in India leased 3.1 million square feet of retail space. The city accounted for 34% of the total leasing activity, followed by Delhi NCR and Mumbai at 14% each. Fashion and apparel were the dominant sectors, comprising 31% of the leasing activity. This quarter also saw five new shopping malls open across key cities, adding 2 million sq ft to the market, surpassing the new retail supply from 2024. These developments signal continued growth in the retail real estate market.
India's retail sector has begun 2025 on a high note, with leasing activity in the first quarter reaching 3.1 million sq ft across the seven major cities. Bengaluru led the way, securing 34% of the total leased area. Delhi NCR and Mumbai followed closely, each accounting for 14% of the leasing activity. Advertisement
The demand for retail space remained strong, driven by various sectors, particularly fashion and apparel, which dominated the market. Fashion and apparel retailers contributed 31% of the leasing activity, while the food and beverage sector followed with 21%. Retailers from the entertainment industry also showed considerable interest, accounting for 16% of the leased space.
In terms of new retail supply, the first quarter of 2025 witnessed the opening of five new shopping malls, which added a combined 2 million sq ft to the market. This figure alone surpassed the total new retail supply in 2024. Mumbai was the largest contributor to this new supply, with three Grade A malls opening. Bengaluru and Hyderabad also saw new retail developments, each contributing one mall to the growing retail landscape.
The increased leasing activity and the rise in new supply indicate a robust growth trend in India's retail sector. According to JLL's report, the sector is poised for continued expansion, with demand likely to remain strong in the coming quarters.
The significant leasing in Bengaluru, which led the country, demonstrates its ongoing status as one of India's most attractive retail destinations. Its rapid growth in retail space demand has encouraged the development of new malls, catering to the changing preferences of consumers and retailers alike.
As for the future, the retail sector's outlook remains positive. With new developments and high leasing activity, retailers are continuing to expand their footprints across the country. The growth in the retail sector is expected to drive further economic development, benefiting both the retail industry and real estate developers.
Bengaluru's dominance in leasing activity reflects its position as a key market for retail development. The increase in new retail space, particularly the opening of several shopping malls, underscores the sector's healthy trajectory. With continued demand across sectors like fashion, food, and entertainment, the retail market is expected to remain resilient, paving the way for further growth and opportunities for both businesses and developers.
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