India to Add 6 Million Sq. Ft. of F&B Retail Space by 2028: JLL Report

India’s retail property market is poised for significant expansion, with nearly 6 million square feet of new space to be dedicated exclusively to the food and beverage (F&B) segment by 2028, according to a new report by JLL India. This planned capacity accounts for approximately 40% of the anticipated demand in the segment and signals a broader transformation in retail real estate strategy.

“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.

Surge in Demand and Rapid Absorption Expected

JLL forecasts rapid absorption of the 6 million sq. ft. of F&B space within three to five years, propelled by growing interest from both domestic and international operators. This trend positions F&B not just as a support category but as a core pillar of India’s evolving retail landscape, with potential to drive footfall and enhance consumer engagement across asset classes.

High Streets Leading F&B Leasing Activity

Despite a strong pipeline of new mall developments, high street retail continues to dominate leasing activity, accounting for over 50% of F&B leasing nationwide. Over the next three years, JLL anticipates that street retail may outpace malls in terms of F&B growth, with business parks also emerging as key locations due to increased demand for amenity-rich dining options.

Since 2023, the F&B sector has seen over 4 million sq. ft. of leasing activity across the top seven Indian cities — Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, and Pune. Bengaluru has emerged as the nation’s F&B hub, contributing more than one-third of total leasing, with Indiranagar identified as a key hotspot.

Foreign Investment Driving Sector Growth

The F&B sector continues to attract significant foreign investment, with over 20 international brands — primarily from the United States — having entered the Indian market since 2023. Delhi NCR and Mumbai remain preferred entry points, while multi-cuisine formats account for 41% of current leasing activity, reflecting increasingly global consumer preferences.

“India’s retail sector has shown remarkable resilience, recording over 22 million sq. ft. of leasing since 2023 despite global economic headwinds,” said Rahul Arora, Senior Managing Director (Karnataka, Kerala), Head of Office Leasing and Retail Services, JLL India.

Retail Real Estate Outlook

India’s Grade A retail stock has grown to 88.7 million sq. ft., with Mumbai, Delhi NCR, and Bengaluru accounting for 63% of total supply. With rising institutional investment and continued interest from global brands, India’s retail sector — particularly F&B — is set to enter a new phase of dynamic, experience-led growth.