India’s retail sector leased 2.6 mn sq ft in Q2 2025; FY25 leasing expected to surpass 10 mn sq ft as new malls open across top cities, JLL said
India’s retail real estate sector witnessed a significant upswing in the first half of 2025, recording a 69% year-on-year growth in leasing activity according to the latest data released by JLL India, a global real estate consultancy firm. The top seven cities in the country collectively leased 5.7 million sq. ft of retail space between January and June 2025, signaling renewed confidence in physical retail and high-street formats.
Q2 Trends and Market Performance
2.6 million sq ft. contributed to the second quarter alone of leased retail space, while this marked a 15% decline from Q1's 3.1 million sq. ft., analysts at JLL attributed the drop to a temporary shortfall in new supply during the April–June period rather than weakening demand.
Despite the dip, the overall performance remained strong. Bengaluru led all cities with 0.67 million sq. ft. leased, closely followed by Delhi NCR at 0.53 million sq. ft., together accounting for nearly 46% of the national leasing volume in Q2 2025.
Retail Categories in Demand
The report notes a significant shift in leasing activity across categories:
- Fashion & Apparel dominated the charts, accounting for 33% of total leasing.
- Food & Beverage (F&B) followed with 22%, reflecting the rising demand for dine-in spaces post-pandemic era.
- Jewellery overtook the entertainment segment to claim third place with a 9% share, leasing 0.23 million sq. ft. driven primarily by new European entrants and expansion by Indian brands in South India and Delhi NCR.
International Brands Increase Presence
India continues to maintain its global retail appeal with 13 new international brands entering the market in H1 2025. Of these, seven were from the food and beverage segment. These brands leased a combined 0.4 million sq. ft., with a significant share taken up in Bengaluru and Delhi NCR.
“India's strategic appeal is drawing more international players,” said Rahul Arora, Senior Managing Director, Karnataka & Kerala, JLL India. “Foreign brand entries have more than doubled year-on-year in the first half of 2025, driven by young demographics and a growing appetite for premium experiences.”
Supply Outlook for H2 2025
JLL estimates that an additional 5.9 million sq ft of new retail space is expected to come on stream in the second half of 2025, with most of it planned to be included in Delhi NCR, Bengaluru, Hyderabad and Pune. If these estimates hold, total annual leasing activity could surpass 10 million sq. ft. Turning 2025 into a historic year for Indian retail real estate.
The 165% YoY growth in mall supply in H1, led by completions in Delhi NCR, Mumbai and Hyderabad, further strengthens this outlook.
Delhi NCR: A Hotspot for F&B and High-Street Retail
Delhi NCR continues to attract premium retail brands, especially in the food and beverage and fashion sectors. The region’s expanding urban population, improved infrastructure and growing demand for high-street experiences make it a favored location for both domestic and international retailers.
New-Age Commercial Projects Align with Market Trends
With demand for retail space on the rise, Saya Homes' flagship commercial projects: Saya South X and Saya Piazza — stand out as top investment and retail destinations:
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- A thriving commercial mix of retail shops, food court, office spaces and entertainment
- Close proximity to high-density residential sectors
- Designed for high footfall with open high-street style frontage
- Ideal for F&B outlets, fashion brands and lifestyle retailers
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- Located right on Noida Expressway, amidst a large premium residential catchment (Jaypee Wishtown, Sector 128 & 132)
- Attracting top F&B brands like Ministry of Beer (Coming Soon)
- Tailored for retail, food and experiential shopping
- Excellent visibility, footfall and long-term leasing value
Conclusion
The surge in retail leasing, particularly in Delhi NCR and Bengaluru, reaffirms India’s place as one of the world’s most promising retail markets with robust leasing momentum, expanding brand interest and strategic supply additions, 2025 is turning out to be a milestone year for retail real estate in the country.
As the second half of the year unfolds, all eyes are on Delhi NCR’s expanding retail corridors and the opportunities they present for brands, investors and developers alike.
Source: Retail leasing up 69% in H1 2025 to 5.7 mn sq ft; Bengaluru, Delhi NCR lead in Q2: JLL report
