India’s food and beverage (F&B) sector has emerged as a major driver of retail real estate, recording approximately 4 million square feet of leasing across seven major cities over the past two years, according to a report by JLL India, as published by Hindustan Times. Bengaluru accounted for nearly one-third of this leasing activity, followed by Mumbai and Delhi NCR.
Developers are responding to robust demand by planning to dedicate up to 25% of space in upcoming destination malls to F&B outlets. By 2028, around 6 million square feet of F&B space is expected to come up across these cities, the report noted.
The seven cities tracked in the report include Bengaluru, Mumbai, Delhi NCR, Chennai, Hyderabad, Kolkata, and Pune. High streets have emerged as the preferred destination for F&B operators, accounting for 54% of total gross leasing across top cities. Indiranagar in Bengaluru continues to be the top choice for F&B brands, while Delhi NCR shows a preference for mall-based F&B formats over high streets.
“The F&B sector is fundamentally 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,” said Samantak Das, chief economist and head of research and REIS, India, JLL. “With six million square feet of dedicated F&B space expected across the top seven cities by 2028, we anticipate rapid absorption within three to five years, driven by both domestic and international operators seeking quality retail locations.”
Bengaluru has established itself as the undisputed F&B leader, absorbing over one-third of total leasing volume. The city also leads in craft beverage growth, hosting 40% of new pubs and breweries. Mumbai and Delhi NCR, alongside Bengaluru, form a trinity driving two-thirds of national leasing activity. Delhi NCR alone accounts for 26% of drinking establishment growth. Southern markets, including Chennai and Hyderabad, along with Kolkata, are showing vibrant high street F&B activity, while Pune aligns more with Delhi NCR’s mall-centric approach.
International operators are increasingly entering the Indian market. Over 20 new global F&B brands have entered India since 2023, with U.S.-based brands leading international expansion. Multi-cuisine outlets dominate the landscape, capturing 41% of leasing activity, reflecting evolving Indian consumer tastes influenced by global travel and culinary trends.
“India’s retail sector has demonstrated remarkable resilience, with over 22 million square feet of leasing activity despite global headwinds. The growth story spans multiple cities, each carving its unique niche,” said Rahul Arora, head of office leasing and retail services, senior managing director (Karnataka, Kerala), JLL India.
The retail real estate sector has expanded significantly, with 18.6 million square feet of new shopping mall space added across the top seven cities over the past five years, bringing total operational Grade A stock to 88.7 million square feet. Shopping malls led leasing activity with a 52% share. Between 2018 and the first half of 2025, approximately $2.5 billion in institutional capital flowed into the sector across 22 deals. Currently, 30 institutionally owned developments span 20.6 million square feet across the top seven cities.