India's F&B Sector Drives Retail Real Estate Growth with 4 Million Sq. Ft. Leasing in 10 Quarters
The F&B sector has become a key driver for retail real estate in India, accounting for 4 million sq. ft. of leasing activity across the top seven cities in the last 10 quarters. Bengaluru, Mumbai, and Delhi NCR lead the charge, driving two-thirds of national activity.
Fb SectorRetail Real EstateLeasing ActivityHigh StreetsIndiaReal Estate MumbaiSep 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,” said 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,” said 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
What is the current share of the F&B sector in retail leasing in India?
The F&B sector's share in overall retail leasing has grown from 16% in 2023 to 22% in 2025, according to a report by JLL.
Which city leads in F&B leasing activity in India?
Bengaluru leads the F&B leasing activity, accounting for more than one-third of total volumes, with Indiranagar being a preferred hub.
What percentage of F&B leasing activity is attributed to high streets?
High streets account for 54% of total F&B leasing activity, compared to 38% in shopping malls.
How much new F&B space is expected by 2028 in the top seven cities?
Nearly 6 million sq. ft. of new F&B space is expected across the top seven cities by 2028.
What is the role of international brands in the F&B sector in India?
Since 2023, more than 20 new international brands have entered the Indian market, with multi-cuisine outlets dominating leasing activity at a 41% share.
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