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Leasing of retail space across India's top seven cities rose sharply in 2025, supported by fresh supply and robust demand from retailers, according to JLL India. Gross leasing volumes touched a three-year high, driven equally by shopping malls and high streets, with Delhi-NCR, Bengaluru, Hyderabad and Mumbai emerging as the largest contributors. The addition of new, institutional-grade retail space encouraged accelerated store expansion, particularly among domestic brands, while global brands also increased their footprint. The year saw the launch of multiple new malls, lifting overall mall inventory across major cities. Industry experts noted that experiential retail, food and beverage formats, and renewed consumer confidence are reinforcing the relevance of physical retail. The trend has resulted in improved occupancies, healthier cash flows and greater confidence among developers and investors in upgrading and reinvesting in retail assets.
Retail real estate leasing activity across India's seven major cities recorded a strong rebound in 2025, with gross leasing volumes rising by 54 per cent year-on-year, according to data released by JLL India. The consultant said total retail leasing reached 12.5 million sq ft during the year, up from 8.1 million sq ft in the previous year, marking the highest level of activity seen in the past three years. Advertisement
The data covers leasing transactions across shopping malls, high streets and prime retail developments. High streets accounted for 48 per cent of total leasing activity, while shopping malls contributed 45 per cent, underlining balanced demand across formats. The remaining share was taken up by other prime retail developments in key urban locations.
Among cities, Delhi-NCR emerged as the largest retail leasing market, recording 3.02 million sq ft of absorption in 2025. Bengaluru followed closely with 2.97 million sq ft, while Hyderabad leased 2.91 million sq ft of retail space. Mumbai accounted for 2.1 million sq ft, reflecting sustained interest from retailers despite relatively higher occupancy costs. Leasing activity was comparatively lower in Kolkata, Chennai and Pune, though all three markets continued to witness steady demand.
JLL attributed the sharp rise in leasing to improved supply conditions, with new retail completions totalling 6.3 million sq ft during the year. Delhi-NCR, Hyderabad and Mumbai together saw the launch of 15 shopping malls in 2025, significantly expanding the availability of institutional-grade retail assets. By the end of the year, total mall inventory across the top seven cities stood at nearly 92 million sq ft.
The availability of high-quality retail space encouraged retailers to accelerate store rollouts in prime locations. Domestic retailers dominated leasing activity, accounting for 82 per cent of total absorption, while 29 new foreign brands entered the Indian market during the year, the highest in the past five years.
Industry participants noted that experiential retail formats and strong momentum in the food and beverage segment are driving footfall-led demand. Retail developers and consultants also highlighted renewed consumer confidence and retailers focus on strengthening physical brand presence as key factors supporting leasing growth. As a result, malls and high streets are witnessing improved occupancies, stronger cash flows and increased confidence in long-term asset reinvestment and upgradation.
Source - PTI
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