India's retail sector leases 3.1 million sq ft in Q1 2025, the highest in Bengaluru: JLL report
Bengaluru and Hyderabad together accounted for 60% of India's overall retail leasing activity, according to a report released by JLL India
Almost 3.1 million sq ft of retail space was leased in shopping malls and high streets between January and March in the first three months of 2025 in the top seven cities across the country. Bengaluru and Hyderabad accounted for 60% of India's overall retail leasing activity, according to a report by JLL India.
The top seven cities include Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Mumbai, and Delhi-NCR.
"Prominent high streets across both Bengaluru and Hyderbad witnessed leasing in suburban micro-markets with larger store size requirements coming from retailer categories such as daily needs and grocery, food and beverages and fashion and apparel," the JLL report said.
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Among retailer categories, fashion and apparel continued to remain the frontrunners in India’s retail landscape, accounting for a significant 31% share of the leasing activity in Q1 2025.
"Retailers in the food and beverage segment comprised 21% share of the leasing pie, followed by entertainment at 16%," said Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.
On the supply front, Q1 2025 witnessed new retail space additions of 2 million sq ft, up by 169% compared to Q1 2024, as strong momentum in new retail store openings continued to play out in major metropolitan cities. On a quarterly basis, gross leasing activity in the retail sector noted an uptrend of 9% from 2.35 in Q4 2024.
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Five new shopping malls added in Q1
JLL said during Q1 2025, five new shopping malls sprawling 2 million sq. ft. became operational. This quarter’s new retail supply has already outpaced the overall annual supply of the calendar year 2024, it said.
Mumbai led in terms of new retail supply (68%) with the addition of three Grade A malls, followed by one each in Hyderabad and Delhi NCR. With the addition of this new supply, the organised retail stock across the top 7 cities reached 88.5 million sq ft at the end of Q1 2025.
"Over the next three quarters (April-December 2025), 7 million sq f. of new Grade A supply of shopping malls is expected as per the current delivery timelines. With this upcoming new supply, the retail sector’s leasing is expected to remain healthy on the back of demand expansion from retailers due to the availability of quality spaces in prime micro-markets in key Indian cities. By year-end 2025, we expect gross leasing in the sector to touch the 10 million sq ft mark easily," the JLL report added.
