India's Retail Real Estate Soars 69% in H1 2025: A Surge in Domestic and International Interest
India's retail sector witnessed a 69% year-on-year growth in retail space absorption in the first half of 2025, driven by significant expansion in major cities like Mumbai, Delhi NCR, and Hyderabad.
Retail Real EstateIndiaLeasingMallsInternational RetailersReal Estate MumbaiJul 30, 2025
Further, leasing in Q2 2025 (April-June) witnessed a decline of 15 per cent compared to Q1 2025, with 2.6 million sq ft leased, due to supply-side constraints as construction of major malls was limited in Q2.
Despite this, new mall supply grew 165 per cent year-on-year in H1 2025, with significant growth driven by Mumbai, Delhi NCR, and Hyderabad during the first quarter. Bengaluru and Delhi NCR were the primary drivers of leasing activity in Q2 2025, contributing 46 per cent of the total gross leasing volume.
Delhi-NCR saw strong interest in food and beverage (F&B) stores, while Bengaluru saw growth in the jewellery and home décor categories. Hyderabad also saw significant growth in retail, led by a new mall. Fashion & Apparel and Food & Beverage continue to be the leading retail categories, contributing 33 per cent and 22 per cent of gross leasing, respectively, in Q2 2025.
Notably, jewellery has emerged as the third largest retail category, capturing a 9 per cent share in gross leasing and outpacing entertainment, which declined from 16 per cent in Q1 to 6 per cent in Q2 2025.
The Indian retail ecosystem is strong, with local retailers controlling 85 per cent of second quarter leasing activity. Alongside this, international interest is also on the rise, with 13 new international retailers entering India in the second quarter of 2025 alone, seven of which are in the F&B sector.
Frequently Asked Questions
What is the year-on-year growth in retail space absorption in India for H1 2025?
India's retail space absorption witnessed a 69 per cent year-on-year growth in the first half of 2025, reaching 5.7 million sq ft.
Which cities are driving the growth in new mall supply in H1 2025?
Mumbai, Delhi NCR, and Hyderabad are the primary drivers of new mall supply growth in H1 2025.
What are the leading retail categories in Q2 2025?
Fashion & Apparel and Food & Beverage are the leading retail categories, contributing 33 per cent and 22 per cent of gross leasing, respectively.
How many new international retailers entered India in Q2 2025?
Thirteen new international retailers entered India in the second quarter of 2025, with seven of them in the F&B sector.
What is the share of local retailers in the second quarter leasing activity?
Local retailers control 85 per cent of the second quarter leasing activity in the Indian retail sector.
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