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India's retail real estate market has witnessed a dramatic upswing in the first half of 2025, with leasing activity soaring by 69% year-on-year across the top seven cities, according to the latest report from real estate consultancy JLL.
Retail space absorption touched 5.7 million square feet between January and June 2025, already achieving 70% of the total leasing volume recorded for the entire year of 2024 (8.1 million sq. ft.). This points to a robust growth trajectory for the remainder of the year.
While the second quarter of 2025 (April–June) saw a 15% dip in leasing compared to Q1, clocking in at 2.6 million sq. ft., the decline is largely attributed to supply-side limitations, as new mall completions were fewer during the quarter.
Nevertheless, H1 2025 marked a 165% year-on-year surge in new retail mall supply, primarily driven by fresh developments in Mumbai, Delhi NCR, and Hyderabad during the first quarter.
Bengaluru and Delhi NCR stood out as the top contributors in Q2, jointly accounting for 46% of the country’s total leasing activity. In Delhi NCR, food and beverage (F&B) outlets dominated demand, whereas Bengaluru saw rising interest in jewellery and home furnishing brands. Hyderabad also recorded notable leasing, thanks to the launch of a new mall.
Fashion & Apparel and F&B retained their status as the most sought-after segments, contributing 33% and 22% respectively to Q2 leasing. Interestingly, jewellery overtook entertainment to become the third-largest retail category, with a 9% share. Entertainment's share dropped significantly from 16% in Q1 to just 6% in Q2.
Indian retailers continued to drive the market, accounting for 85% of all leasing activity in Q2. However, the market also saw rising international interest, with 13 new global brands entering India in the same period. Notably, seven of these newcomers were from the F&B sector, signaling India’s growing appeal as a destination for global cuisine and lifestyle brands.
With continued momentum, strong domestic demand, and increasing international participation, India’s retail real estate sector is poised for a record-breaking year.
(Source: ANI)
