India’s Retail Real Estate Soars in 2025 as Leasing Touches New Heights

Setting the Stage: A Record-Breaking Surge in Retail Leasing

In 2025, India’s retail real estate story takes a vibrant new turn. The sector, buzzing with energy, posted a remarkable 69 percent year-on-year growth in leasing activity during the first half of the year, according to the latest JLL report. Top seven cities together notched up 5.7 million square feet of leased retail space, highlighting the growing appetite for quality locations among brands old and new.

Quarterly Dynamics: Bengaluru and Delhi NCR at the Helm

While the first quarter drove momentum, the second quarter saw some cooling—with 2.6 million sq ft leased, a 15 percent dip from Q1—attributed mostly to limited new supply from April to June. Yet, the cumulative H1 tally equaled 70 percent of last year’s total, suggesting a robust trajectory. Bengaluru and Delhi NCR led the pack, contributing 46 percent of gross leasing in Q2. Bengaluru shone in jewellery and home furnishings, while Delhi NCR sparkled in food and beverage.

Category Champions and Regional Stories

• Fashion and apparel dominated, claiming 33 percent of Q2 leases.
• Food and beverage followed, capturing a 22 percent share.
• Jewellery ascended to third place with 9 percent, driven by both European entrants and strong local players—especially in the South and Delhi NCR.

The Rise of International Brands

The Indian market’s appeal is unmistakable. While domestic retailers clung to an 85 percent market share, international brands made steady incursions. Thirteen new global entrants signed leases—seven from food and beverage—spanning a collective 0.4 million sq ft. Bengaluru alone accounted for a quarter of national retail leasing, securing its reputation as the launchpad of choice for both home-grown and international names.

Market Drivers: Why India?

Young demographics, increasing disposable income, and an elevated taste for premium experiences are making India a magnet for retail growth. As Rahul Arora of JLL observes, the number of foreign brand entries has doubled year-on-year, a potent sign of enduring attraction.

The Road Ahead: H2 2025 and Beyond

Buoyed by energetic demand, JLL projects another 5.9 million sq ft of new retail space becoming operational in the second half. New malls in Delhi NCR, Bengaluru, Hyderabad, and Pune are set to redefine retail landscapes. Expectations now point toward breaching the 10 million sq ft annual leasing mark by year-end—an unprecedented high for Indian retail real estate.

Conclusion: India’s Retail Renaissance

This surge reflects a resilient sector ready to embrace innovation, diversity, and growth. Whether driven by local champions or international brands, the momentum is real—making 2025 a year to remember for India’s retail real estate.