Delhi, Bengaluru and Hyderabad Dominate Retail Leasing in 2025: JLL

India’s retail real estate market staged a strong comeback in 2025, recording its highest annual leasing activity in three years. According to a report by real estate consultancy JLL, gross retail leasing across the top seven Indian cities touched 12.5 million sq ft during the year, marking a sharp 54 percent year-on-year growth.

The resurgence comes after a brief moderation phase, with leasing volumes declining from 8.7 million sq ft in 2023 to 8.1 million sq ft in 2024. Momentum returned decisively in 2025, supported by fresh supply additions and sustained demand from both domestic and international retailers. The final quarter of the year stood out, contributing 3.6 million sq ft of leasing, making it the strongest quarter of 2025.

Delhi NCR, Bengaluru and Hyderabad emerged as the clear leaders, together accounting for 71 percent of total retail leasing activity. Delhi NCR and Bengaluru each captured a 24 percent share, while Hyderabad followed closely with 23 percent. Mumbai contributed 17 percent of total leasing, while Chennai and Kolkata recorded 5 percent each. Pune lagged with a modest 2 percent share, largely due to limited new supply and fewer brand expansions.

Shopping malls and high streets remained the preferred retail formats. Shopping malls accounted for 45 percent of total leasing, supported by the launch of 15 new malls across Delhi NCR, Hyderabad and Mumbai. High streets contributed 48 percent of leasing, particularly in Bengaluru, where retailers continued to favour prominent arterial locations. By the end of 2025, mall stock across the top seven cities stood at nearly 92 million sq ft.

Fashion and apparel remained the largest leasing category, accounting for 34 percent of total absorption, followed by food and beverage at 20 percent. Direct-to-consumer brands also expanded steadily, leasing around 0.9 million sq ft during the year, led by fashion, beauty and wellness segments.

Domestic retailers drove the bulk of demand, accounting for 82 percent of total leasing. Retail space taken up by Indian brands crossed 10 million sq ft in 2025, reflecting growing confidence in organised retail formats. Foreign brands also stepped up expansion, with 29 new global brands entering India during the year.

Looking ahead, JLL noted that more than 47 million sq ft of mall space is under various stages of development and is expected to be operational by 2030. The continued addition of institutional-grade retail assets is expected to support steady leasing momentum across major urban markets.