India’s retail sector saw a strong start to 2025, leasing 3.1 million square feet of retail space across shopping malls and high streets in the first three months of the year, as reported by Hindustan Times.
Bengaluru emerged as a leader, alongside Hyderabad, which together accounted for 60% of India’s total retail leasing activity, according to a report by JLL India.
The top seven cities—Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Mumbai, and Delhi-NCR—drove the leasing activity. Prominent high streets in Bengaluru and Hyderabad saw leasing in suburban micro-markets, with larger store size requirements, particularly from retailer categories like daily needs and grocery, food and beverages, and fashion and apparel.
Among the various retail categories, fashion and apparel remained the dominant segment, accounting for 31% of leasing activity in Q1 2025. Retailers in the food and beverage segment took up 21% of leasing, followed by the entertainment sector with a 16% share.
On the supply side, new retail space additions totaled 2 million square feet in Q1 2025, reflecting a significant 169% increase compared to the same period in 2024. This surge in supply aligns with the ongoing strong demand for retail space in major metropolitan cities. Compared to the last quarter of 2024, gross leasing activity in Q1 2025 saw an uptick of 9%, up from 2.35 million square feet leased in Q4 2024.
The quarter also witnessed the addition of five new shopping malls, totaling 2 million square feet of retail space. This figure has already exceeded the entire retail space supply for 2024. Mumbai led the charge in new retail supply, contributing 68% of the total with the addition of three Grade A malls, followed by one mall each in Hyderabad and Delhi-NCR. With these additions, the total organized retail stock across the top seven cities reached 88.5 million square feet by the end of Q1 2025.
Looking forward, the retail sector is expected to continue its robust growth. JLL forecasts an additional 7 million square feet of new Grade A retail space to be delivered by the end of 2025. As per the current delivery timelines, leasing activity is expected to stay healthy, supported by rising demand from retailers for quality spaces in prime micro-markets in key cities. By the end of 2025, gross leasing in the sector is expected to reach 10 million square feet.