India’s retail real estate sector has begun 2025 on a historic high. According to a new report by JLL India, gross retail space leasing touched 3.1 million sq. ft. across the top 7 cities in Q1 2025, marking a staggering 169% year-on-year (YoY) growth and making it the best-performing opening quarter in the past three years.
With domestic retailers leading the charge, fashion and apparel brands dominating leasing activity, and supply chains rebounding strongly with new mall additions, the sector’s momentum is expected to accelerate in the coming quarters.
Retail Leasing Surges: Key Metrics for Q1 2025
| Metric | Q1 2025 | YoY Change |
|---|---|---|
| Gross Leasing Volume | 3.1 million sq. ft. | +169% |
| New Mall Supply | 2 million sq. ft. | Surpassed entire 2024 |
| Avg. Quarterly Growth | +9% QoQ | – |
| Organized Retail Stock | 88.5 million sq. ft. | – |
The organized retail stock across Delhi NCR, Mumbai, Bengaluru, Hyderabad, Chennai, Pune, and Kolkata now stands at 88.5 million sq. ft., bolstered by the opening of five new shopping malls in just three months.
City-wise Breakdown: Bengaluru & Hyderabad Take the Lead
Bengaluru and Hyderabad collectively accounted for 60% of total leasing activity during Q1 2025. Leasing activity in these cities was robust on both high streets and suburban locations, especially for larger format stores catering to daily needs, grocery, F&B, and fashion.
Retail Category Performance
| Category | Share in Leasing Activity (Q1 2025) |
|---|---|
| Fashion & Apparel | 31% |
| Food & Beverage | 21% |
| Entertainment (Multiplex, FECs) | 16% |
| Others (Auto, Banks, Lifestyle, etc.) | 32% |
Fashion-forward Indian consumers, particularly the youth, are driving store expansion in both premium and value segments. Fast fashion and contemporary lifestyle brands led space absorption, reinforcing the sector’s optimism.
Domestic Retailers Dominate Space Take-up
| Period | Area Leased by Domestic Retailers (Mn sq. ft.) | Share in Total Leasing |
|---|---|---|
| Q1 2024 | 0.87 | – |
| Q4 2024 | 2.35 | – |
| Q1 2025 | 2.65 | 86% |
Domestic brands, including many Direct-to-Consumer (D2C) players, significantly outpaced international ones. Notably, international retailers leased 0.4 million sq. ft., and eight new foreign brands made their India debut this quarter, including names in fast fashion, premium coffee, and electric vehicles.
Mall Supply Rebounds After a Tough 2024
India saw five new Grade A malls become operational in Q1 2025, totaling 2 million sq. ft. — a sharp recovery after a 73% decline in mall supply during 2024.
| City | New Mall Supply (Q1 2025) | Share in Total Supply |
|---|---|---|
| Mumbai | 3 malls | 68% |
| Hyderabad | 1 mall | – |
| Delhi NCR | 1 mall | – |
This fresh supply in premium micro-markets has helped alleviate pressure on demand and is likely to boost leasing further.
What’s Ahead for 2025?
JLL estimates 7 million sq. ft. of new Grade A mall space will be added in the remaining three quarters of 2025. With leasing already at 3.1 million sq. ft., experts predict that gross leasing could easily surpass the 10 million sq. ft. markby year-end.
Key Takeaways
- Q1 2025 is the strongest retail quarter in 3 years, both in demand and new supply.
- Fashion & F&B remain top growth drivers.
- Domestic retailers are leading expansion, backed by rising consumer confidence.
- Grade A mall space pipeline is strong for the rest of 2025.
- Bengaluru and Hyderabad are leading India’s retail footprint expansion.
India’s retail story is being rewritten in 2025 — not just with booming consumerism, but with a physical retail footprint that is adapting, expanding, and thriving. With both demand and supply aligned, the sector is set to make 2025 a landmark year.
Also Read: Indian Real Estate: Riding Higher in 2025
