India's F&B Sector Drives Retail Real Estate Growth with 4 Million Sq. Ft. Leasing in Top Cities
Bengaluru, Mumbai, and Delhi NCR lead the way as key markets, contributing to the thriving F&B and retail real estate sectors. The industry has seen significant expansion, with new shopping mall space and international brands entering the market.
FbRetail Real EstateLeasingIndiaJllReal EstateSep 15, 2025
In F&B, Bengaluru tops with more than one-third share of total leasing volume as Indiranagar remains a preferred destination for operators. Mumbai and Delhi NCR follow as key markets, collectively contributing to a thriving sector.
“F&B is reshaping India’s retail real estate landscape. We are witnessing a paradigm shift where developers are planning to dedicate up to 25% of space in upcoming destination malls to F&B -- a clear response to the segment’s robust demand dynamics. With 6 million sq. ft of dedicated F&B space expected to become available across the top 7 cities by 2028, we anticipate rapid absorption within 3-5 years, driven by both domestic and international operators seeking quality retail locations,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Within F&B, high streets dominate, accounting for over 50% of transactions in the past 30 months. High streets account for 54% of total gross leasing across top cities, which shows organic expansion opportunities provided by high streets compared to traditional shopping mall formats. This trend signals that the sector’s appetite for prime real estate extends well beyond traditional mall formats.
The growth in F&B has attracted international operators, with over 20 new global F&B brands entering India since 2023, according to the data. US-based brands lead, while Delhi NCR and Mumbai remain hotspots for global brands, establishing their maiden Indian presence. Multi-cuisine establishments hold 41% share of leasing activity.
“India's retail sector has demonstrated remarkable resilience, with over 22 million sq. ft. of leasing activity despite global headwinds. This diversified, regionally-balanced growth reinforces that India's retail expansion isn't just robust—it’s strategically distributed across our key metros,” said Rahul Arora, Head - Office Leasing & Retail Services, JLL India.
The retail real estate sector as a whole has also seen strong growth, with 18.6 million sq ft of new shopping mall space added across the top 7 cities over the past five years, bringing total operational Grade A stock to 88.7 million sq ft. Mumbai, Delhi NCR, and Bengaluru dominate the landscape, accounting for 63% of existing organised retail assets. Despite global uncertainties, retail leasing has remained robust with over 22 million sq. ft absorbed between 2023 and H1 2025. Shopping malls led the leasing activity with a 52% share. During this period, more than 60 new global retailers—primarily from EMEA and America—opened their first Indian stores, primarily in Delhi NCR and Mumbai.
In its outlook, the JLL report says nearly 6 million sq ft of space will be dedicated to F&B, and that this upcoming supply will cater to nearly 38-40% of total F&B demand. However, given the fact that high streets cater to more than 50% of total F&B leasing, the potential for F&B leasing on high streets will be manifold in the next 3 years, the report adds.
Frequently Asked Questions
Which cities are leading in F&B leasing activity in India?
Bengaluru, Mumbai, and Delhi NCR are the leading cities in F&B leasing activity. Bengaluru alone accounts for more than one-third of the total leasing volume, with Indiranagar being a preferred destination for operators.
What percentage of space in new malls is dedicated to F&B?
Developers are planning to dedicate up to 25% of space in upcoming destination malls to F&B, reflecting the segment's robust demand dynamics.
How much new shopping mall space has been added in the top 7 cities over the past five years?
Nearly 18.6 million sq ft of new shopping mall space has been added across the top 7 cities over the past five years, bringing the total operational Grade A stock to 88.7 million sq ft.
What is the share of multi-cuisine establishments in F&B leasing activity?
Multi-cuisine establishments hold a 41% share of leasing activity in the F&B sector.
How many new global F&B brands have entered India since 2023?
Over 20 new global F&B brands have entered India since 2023, with US-based brands leading the way.
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