- Fashion and food-beverage sectors accounted for 54% of retail leases in 2025
- Shopping malls led gross leasing activity in 2025, with a 54% overall increase
- NCR, Hyderabad, Bengaluru held 71% of retail leasing volume in 2025
Fashion and the food-and-beverage sectors took up 54% of all retail leases in 2025, with shopping malls having the largest share in gross leasing activity for the aforementioned year. According to a report by real estate services firm JLL India, leasing in 2025, saw an uptick of 54%.
"There is a substantial 48% annual growth in leasing by direct-to-consumer brands in India, fuelled by categories such as fashion and apparel, jewellery and beauty, cosmetics and wellness," Samantak Das, chief economist and head of research and REIS, India, JLL said.
The National Capital Region, Hyderabad and Bengaluru had the largest slice of the retail surge with a combined market dominance of 71% of the total leasing volume. Shopping mall openings led the leasing wave in the NCR and Hyderabad at 45% , while high street locations drew retailer expansion in Bengaluru at 48%.
According to the report, India's retail sector saw a three-year peak in gross leasing activity. This growth is attributed by the report to a resilient economy and a rise in discretionary or non-essential spending by consumers off the back of an influx of premium brands in offline retail shops.
Domestic brands saw a 58% year-on-year growth in retail spaces that were leased, the report said.
“Demand from domestic retailers continued to accelerate as they accounted for 82% of 2025's gross leasing activities," Rahul Arora, head of office leasing and retail services and senior managing director (Karnataka, Kerala), India, JLL, said.
Brick and mortar retail shops in the top seven cities of India were at a three-year high due to gross leasing volume reaching a total of 12.5 million sq. ft in 2025.
India's retail sector continued on its strong growth trajectory, led by substantial supply additions of 6.3 million sq. ft that have facilitated "aggressive retailer expansion", according to the report.
"As many as 29 new foreign brands entered India during the year, the highest in the past five years. Leading names such as Bershka, Nespresso, COS, Lego and NEXT came to India in 2025," Arora added.
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