India’s Retail Sector Enters a High-Growth Phase
India’s retail sector recorded one of its strongest quarters in recent history, with 3.2 million sq ft of gross leasing in Q3 2025 (July–September) across the top seven cities, marking a 65% year-on-year rise, according to JLL.
Delhi NCR alone accounted for 35% of the total leasing, thanks to strong demand at newly opened malls. With this quarter’s performance, leasing for January–September 2025 reached 8.9 million sq ft, already 110% of 2024’s total annual leasing.
Quarter-on-Quarter Growth Driven by Fresh Supply
On a sequential basis, Q3 leasing grew 22%. New supply infusion of 1.5 million sq ft in Delhi NCR and Hyderabad unlocked expansion plans that retailers had deferred earlier due to limited availability.
Both shopping malls (53%) and high streets (41%) contributed significantly to fresh leasing during the quarter.
Delhi NCR and Hyderabad Dominate Leasing
Among India’s top retail markets, Delhi NCR and Hyderabad jointly contributed 47% of Q3 leasing activity. Delhi NCR led with strong mall absorption, while Hyderabad’s high streets saw aggressive expansion by domestic and international brands.
Mumbai followed with 0.6 million sq ft of leasing, trailed by Bengaluru at 0.4 million sq ft. Kolkata and Chennai maintained steady momentum, while Pune recorded a marginal dip compared to Q2 2025.
Domestic Retailers Lead Space Absorption
Domestic retailers continued to outperform, contributing 81% of Q3 leasing, with fashion and apparel brands accounting for 35% of the take-up. The food & beverage (16%) and daily needs & grocery (11%) categories also remained active.
JLL noted that D2C brands are aggressively expanding their “click-and-mortar” presence, especially in fashion, jewellery, beauty, and wellness categories.
Luxury Retail Grows, Though Cautiously
Luxury brands leased 0.2 million sq ft during the first nine months of 2025 — a 19% YoY rise. While new luxury entrants have been few in 2025, the category continues to gain traction, supported by premium retail infrastructure across Indian metros.
Leasing Likely to Hit a New Peak in 2025
With the eight-quarter rolling average hovering around 2–2.5 million sq ft, JLL expects total retail leasing for 2025 to reach 10.5–11.5 million sq ft, exceeding earlier forecasts.
Additionally, 4.7 million sq ft of new retail supply is slated for delivery in Q4 2025. Looking ahead, 37 million sq ft of new mall supply is projected to become operational across top cities by 2029, supporting sustained expansion from retailers.
Also Read: Retail Real Estate Booms in India: 169% YoY Growth in Q1 2025 Leasing Activity
