Retail Leasing Boom: A Record 54% Surge Across Major Indian Cities

Leasing of retail space in malls and high streets surged 54% in 2025 across India's major cities. This growth, driven by strong demand and new supply, reached a three-year high at 12.5 million sq ft. Domestic retailers led the leasing activity, with foreign brands also making significant entries into the market.

Retail leasing across major Indian cities experienced a significant surge, leaping 54% in the last year, according to JLL India. This remarkable growth propelled leasing volumes to a three-year peak, with gross leasing expanding to 12.5 million square feet in 2025, compared to 8.1 million the previous year.

The top contributors to this uptick in leasing include Delhi-NCR, Bengaluru, and Hyderabad, with Delhi-NCR leading at 3.02 million sq ft. Shopping malls and high streets played pivotal roles, contributing a combined 93% to total leasing activities. An influx of new retail spaces, especially 15 new shopping malls launched in 2025, fueled this robust growth.

Industry experts point to a rise in experiential retail and the F&B segment's momentum as key drivers. Domestic retailers dominated the leasing space, making up 82% of transactions, although 29 foreign brands entered the Indian market, marking a five-year high. Retail sectors' growth is further bolstered by renewed consumer confidence and the expansion plans of brands.