F&B Sector Drives India's Retail Real Estate Growth with 4 Million Sq. Ft. Leasing in 10 Quarters
India's food and beverage (F&B) sector has emerged as a key driver for retail real estate, accounting for 4 million sq. ft. of leasing activity across the top seven cities in the last 10 quarters, according to a report by JLL.
Fb SectorRetail Real EstateLeasingIndiaHigh StreetsReal EstateSep 17, 2025
Bengaluru leads the F&B charge, cornering more than one-third of total leasing volumes, with Indiranagar consolidating its position as a preferred hub. Mumbai and Delhi NCR follow closely, together with Bengaluru forming the top trio that drives two-thirds of national activity.
The F&B sector is fundamentally reshaping India’s retail real estate landscape. Developers are now planning to dedicate up to 25% of space in upcoming destination malls to F&B, a clear response to rising demand. With nearly 6 million sq. ft. of new F&B space expected across the top seven cities by 2028, we anticipate strong absorption within 3–5 years. What is particularly compelling is the dominance of high streets, which accounted for more than 50% of leasing activity in the past 30 months, according to Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
High streets emerged as the top choice for operators, contributing 54% of total F&B leasing, compared to 38% in shopping malls. The preference reflects the flexibility and organic growth opportunities high streets offer, while malls remain important for larger, destination-driven formats.
Domestic F&B brands commanded 86% of leasing activity, far outpacing international players. However, global appetite for the Indian market is growing: since 2023, more than 20 new international brands have entered, led by US-based operators. Delhi NCR and Mumbai remain the gateway markets for global entrants, with multi-cuisine outlets dominating leasing activity at a 41% share.
India’s retail sector has demonstrated remarkable resilience, recording more than 22 million sq. ft. of leasing despite global headwinds. Bengaluru has not only led F&B absorption but also spearheaded the craft beverage movement with 40% of new pubs and breweries. Mumbai and Delhi NCR, alongside Bengaluru, remain the powerhouses, while Chennai, Hyderabad and Kolkata are witnessing vibrant high-street-led growth. Pune, on the other hand, mirrors Delhi NCR with its mall-centric approach. This balanced distribution reflects the sector’s depth and diversity, as noted by Rahul Arora, Head – Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
The larger retail real estate landscape has also seen unprecedented expansion. In the past five years, 18.6 million sq. ft. of new mall space has been added, taking total operational Grade A stock across the top seven cities to 88.7 million sq. ft. During this period, more than 60 global retailers entered India, while the launch of the Nexus Select Trust REIT in 2023 marked a milestone in institutional participation. Around USD 2.5 billion of institutional capital has flowed into retail real estate since 2018.
With 6 million sq. ft. of upcoming mall space already earmarked for F&B, the segment is expected to account for nearly 40% of new demand in the next few years. High streets, however, are set to continue their dominance, while the rise of amenity-driven F&B in business parks signals its integration with other retail categories.
Backed by robust domestic consumption, rising global interest, and growing institutional confidence, India’s F&B sector is positioned to remain at the heart of the country’s retail real estate story through the next decade.
Frequently Asked Questions
Which cities are leading the F&B leasing activity in India?
Bengaluru, Mumbai, and Delhi NCR are the top three cities leading the F&B leasing activity, collectively driving two-thirds of national activity.
What percentage of new mall space is dedicated to F&B in upcoming destination malls?
Developers are planning to dedicate up to 25% of space in upcoming destination malls to F&B, reflecting the rising demand in this sector.
How much new F&B space is expected by 2028?
Nearly 6 million sq. ft. of new F&B space is expected across the top seven cities by 2028.
What is the role of high streets in F&B leasing?
High streets emerged as the top choice for operators, contributing 54% of total F&B leasing, compared to 38% in shopping malls. They offer flexibility and organic growth opportunities.
How has the global F&B market responded to the Indian market?
Since 2023, more than 20 new international F&B brands have entered the Indian market, led by US-based operators, with Delhi NCR and Mumbai being the primary gateway markets.
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