India’s retail real estate market is experiencing its strongest leasing run in years, with 5.7 million sq. ft. of gross leasing recorded in H1 2025, marking a 69% year-on-year growth, according to JLL’s latest report. This volume represents nearly 70% of the total leasing activity seen in all of 2024, signaling a robust demand trajectory.
However, Q2 2025 witnessed a 15% quarter-on-quarter dip in leasing due to supply constraints, suggesting that momentum could moderate if new retail space does not come online in time to meet demand.
📈 H1 Retail Leasing Reaches Historic Levels
Retail leasing across India’s top 7 cities—Delhi NCR, Bengaluru, Mumbai, Hyderabad, Pune, Chennai, and Kolkata—reached 5.7 million sq. ft. in H1 2025, up from 3.3 million sq. ft. in H1 2024. The first quarter alone (Jan–Mar 2025) accounted for 3.1 million sq. ft, while Q2 leasing stood at 2.6 million sq. ft.
New mall supply also surged by 165% YoY, with 2.3 million sq. ft of new retail space added in H1 2025, driven by major completions in Mumbai, Hyderabad, and Delhi NCR.
🧮 Table 1: Retail Market Performance – H1 2025 vs H1 2024
| Parameter | H1 2024 | H1 2025 | YoY Growth |
|---|---|---|---|
| Gross Leasing (mn sq. ft) | 3.3 | 5.7 | 69% |
| New Mall Supply (mn sq. ft) | 0.9 | 2.3 | 165% |
Source: JLL Research | Top 7 cities
🛍️ City Trends: Bengaluru and Delhi NCR Lead, Jewellery Surpasses Entertainment
In Q2 2025 alone, Bengaluru and Delhi NCR accounted for 46% of gross leasing. Bengaluru showed high activity in jewellery and home furnishings, while Delhi NCR was dominated by food and beverage (F&B) retailers.
🗣️ Quote:
“Jewellery emerged as the third leading retail category, overtaking Entertainment for the first time. From a 16% share in Q1 2025, Entertainment fell to 6% in Q2, while Jewellery rose to 9%,”
said Dr. Samantak Das, Chief Economist and Head of Research, JLL India.
Cities like Hyderabad and Mumbai recorded leasing activity around 0.5 million sq. ft each, while Chennai and Kolkata showed a mild quarter-on-quarter rise. Pune remained moderate in comparison.
🧮 Table 2: Category-wise Share in Q2 2025 Retail Leasing
| Category | Share in Q2 2025 (%) |
|---|---|
| Fashion & Apparel | 33% |
| Food & Beverage | 22% |
| Jewellery | 9% |
| Entertainment | 6% |
Source: JLL Research
🌍 International Brands Accelerate Entry; Domestic Brands Still Dominate
While domestic retailers dominated 85% of Q2 leasing, the international share of 15% equated to around 0.4 million sq. ft. Notably, 13 new global brands entered India in Q2 2025 alone, with 7 in the F&B segment.
🗣️ Quote:
“India’s strategic position for retail expansion is evident. With 13 new global entrants in Q2 alone, it reflects rising global confidence driven by India’s young demographics and evolving consumption,”
said Rahul Arora, Head – Office Leasing & Retail Services, JLL India.
🏢 Outlook: 5.9 Million Sq. Ft. of Supply Set for H2 2025
With an additional 5.9 million sq. ft of new retail space scheduled for the second half of 2025, mainly in Delhi NCR, Bengaluru, Hyderabad, and Pune, India is on track to cross the 10 million sq. ft annual leasing mark for the first time.
🧮 Table 3: Upcoming Retail Supply in H2 2025 (Select Markets)
| City | Expected New Supply (mn sq. ft) |
|---|---|
| Delhi NCR | 2.0 |
| Bengaluru | 1.5 |
| Hyderabad | 1.2 |
| Pune | 1.0 |
| Total | 5.9 |
Source: JLL Projections
However, the ability of developers to deliver high-quality retail infrastructure on time will be key to sustaining leasing momentum. Delays or mismatches in location and design could limit opportunities for expanding brands.
📌 Conclusion
India’s retail real estate market is scaling new heights with a record-breaking H1 2025 performance. However, the sector now faces the challenge of keeping up with demand through timely supply, as developer and retailer strategies adjust to a changing consumption and investment environment. Both global and local players are betting big on India’s consumer growth—and so far, the numbers support their optimism.
Also Read: Retail Real Estate Booms in India: 169% YoY Growth in Q1 2025 Leasing Activity
