Retail Leasing Surges to 12.5 Million Sq Ft in 2025; Delhi NCR and Bengaluru Lead the Charge

Retail space leasing across malls and high streets in the top seven Indian cities surged by over 50% to a three-year high of 12.5 million sq ft in 2025. This marks a significant increase from the 8.1 million sq ft leased in the previous year, according to a JLL report. The top cities contributing to this growth are Delhi NCR, Bengaluru, Hyderabad, and Mumbai.

Delhi NCR led the leasing activity with 3.02 million sq ft, followed by Bengaluru at 2.97 million sq ft, Hyderabad at 2.91 million sq ft, and Mumbai at 2.1 million sq ft. Kolkata recorded 0.65 million sq ft, Chennai 0.59 million sq ft, and Pune 0.24 million sq ft.

The retail sector hit a three-year high last year as gross leasing volumes surged 54% year-on-year to 12.5 million sq ft, signaling renewed confidence among retailers despite global economic uncertainty. The seven Indian cities included in the study are Delhi-NCR, Hyderabad, Mumbai, Bengaluru, Kolkata, Chennai, and Pune.

Gross leasing encompasses retail space in shopping malls, high streets, and prime retail developments. In 2025, shopping malls accounted for 45% of the total leasing activity, while high streets commanded a dominant 48% share, according to the JLL India report.

After a slowdown in 2024, retail leasing rebounded sharply in 2025, driven by rising discretionary spending, premium brand expansion, and new supply. The fourth quarter of 2025 emerged as the strongest, recording 3.6 million sq ft of leasing. During the year, around 6.3 million sq ft of new retail supply was added, enabling aggressive store rollouts across major urban markets.

Delhi NCR, Bengaluru, and Hyderabad emerged as the top three retail markets, together accounting for 71% of total leasing. Delhi NCR and Bengaluru each contributed 24% of leasing activity, followed closely by Hyderabad at 23%. While shopping malls dominated leasing in Delhi NCR and Hyderabad, Bengaluru stood out for its strong preference for high-street locations. Mumbai accounted for 17% of leasing, while Chennai, Kolkata, and Pune saw limited activity due to supply constraints.

As for retail stock, the country’s top seven cities accounted for nearly 92 million sq ft of mall stock in 2025. Delhi NCR, Hyderabad, and Mumbai witnessed the launch of 15 shopping malls, collectively contributing to the nation's overall mall inventory. As of the end of 2025, the mall stock in the top seven cities stood at nearly 92 million square feet.

The availability of premium institutional-grade mall space encouraged retailers to accelerate store launches in prime locations. Demand from domestic retailers remained the backbone of the market, accounting for 82% of total leasing during the year. Retail space take-up by Indian brands crossed 10 million sq ft in 2025, up from 6.5 million sq ft in 2024. Fashion and apparel continued to lead leasing with a 34% share, while food and beverage (F&B) gained ground, rising to 20% in 2025.

Direct-to-consumer (D2C) brands also played a significant role, leasing 0.9 million sq ft during the year, supported by strong growth in categories such as fashion, beauty, jewellery, and wellness. Foreign brands also stepped up their presence, recording 36% year-on-year growth in leased space, with 29 new international brands entering India, the highest in five years.

Looking ahead, JLL noted that nearly 47 million sq ft of mall space is under construction across the top seven cities and expected to be operational by 2030. With fast-evolving consumer preferences and increasing consumption spending, developers will need to incorporate tech, hospitality, and experience-related elements to ensure the development pipeline is future-ready. The Indian retail sector has witnessed $2.3 billion in institutional investment over the last five years. Going forward, it is only the future-ready retail assets that will attract more institutional capital.