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India's Retail Leasing Soars 54% in 2025, Hits 3-Year High

India's retail sector achieved a three-year peak in gross leasing activity in 2025, with volume growing 54% year-on-year to 12.5 million square feet across the top seven cities. The surge is attributed to resilient economic conditions, rising discretionary spending, and aggressive expansion by retailers, particularly in shopping malls and high streets. Demand was led by domestic retailers, who accounted for 82% of leasing, while Direct-to-Consumer (D2C) brands significantly expanded their physical footprint. The sector also saw substantial new supply and strong institutional investment of $2.3 billion over the past five years.

Key Points: India Retail Leasing Hits 3-Year High with 54% Growth

  • 54% YoY leasing growth
  • 12.5 million sq ft gross leasing
  • 15 new malls launched in 2025
  • Domestic retailers drove 82% of activity
2 min read

India's retail sector hits 3-year high with 54 pc leasing growth in 2025

India's retail leasing surged 54% in 2025 to 12.5 million sq ft, driven by mall openings and strong domestic demand, a JLL report shows.

"While fashion and apparel... still retains the top slot due to demand emanating from renowned domestic and D2C brands - Dr Samantak Das, JLL"

Mumbai, Jan 27

The year 2025 delivered exceptional 54 per cent year-on-year growth in gross leasing volume in India as retail sector achieved a three-year peak in gross leasing activity, a report showed on Tuesday.

Brick and mortal retail in the top seven cities of India reached a three-year high as gross leasing volume hit a total of 12.5 million square feet in 2025, according to a JLL report.

This surge reflects unwavering retailer confidence across key metropolitan markets and aggressive expansion strategies, as India redefines its consumption narrative against an uncertain global backdrop.

A resilient economy, coupled with rising discretionary spending, is fuelling this leasing renaissance, with offline retail formats witnessing an influx of premium brands commanding strong consumer loyalty, said the report.

India's retail sector maintains its robust growth trajectory, driven by substantial supply additions of 6.3 million sq. ft that have facilitated aggressive retailer expansion.

Delhi NCR, Hyderabad, and Mumbai witnessed the launch of 15 shopping malls in 2025, collectively contributing to the nation's overall mall inventory. As of end of 2025, the mall stock in the top seven cities stood at nearly 92 million square feet.

Shopping malls captured 45 per cent of the total leasing activity in 2025, while high streets commanded a dominant 48 per cent share.

"While fashion and apparel (34 per cent) and food and beverage (20 per cent) together comprised more than half of the annual leasing, the share of Fashion and Apparel has moderated from 41 per cent in 2023 to 34 per cent in 2025 though it still retains the top slot due to demand emanating from renowned domestic and D2C brands," said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Another interesting trend that became more pronounced during the year was the direct-to-consumer (D2C) brands going full throttle in terms of setting up physical store footprint garnering 0.9 million sq. ft of gross leasing volume, Das informed.

Demand from domestic retailers continued to accelerate as they accounted for 82 per cent of 2025's gross leasing activities. The Indian retail sector has witnessed $2.3 billion institutional investment during the last 5 years.

- IANS

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Reader Comments

R
Rohit P
Great to see domestic retailers leading with 82%! We should support our own brands. But I hope this retail boom also reaches tier 2 and 3 cities, not just the top seven. The real growth story will be when smaller cities get these malls and premium stores.
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David E
Interesting data point. The shift from 41% to 34% for Fashion & Apparel while F&B holds at 20% shows Indians are valuing experiences (dining out) as much as shopping. The mall is becoming a weekend destination for the whole family.
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Ananya R
As someone who shops online a lot, I still love going to malls. Nothing beats trying clothes on or having a coffee with friends after shopping. Glad to see "brick and mortar" is thriving. Hope the service and quality in these new stores matches the expansion speed.
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Suresh O
Good growth, but a word of caution. We must ensure this doesn't just lead to more traffic and pollution in cities like Delhi and Mumbai. Urban planning needs to keep pace with this retail explosion. More malls mean more cars.
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Kavya N
The high street share at 48% is surprising and wonderful! It shows our local market areas are still the heart of retail. Malls are fun, but nothing replaces the charm of shopping on a bustling high street like Colaba Causeway or Commercial Street. 🛍️

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