Retail Real Estate Sees Remarkable 54% Growth in Leasing Activity Across Major Indian Cities
India's retail real estate sector has witnessed a significant resurgence, with leasing of retail space in shopping malls and high streets surging by an impressive 54% during the last year across seven major metropolitan areas. This robust growth has been primarily fueled by improved supply conditions and strong, sustained demand from retailers seeking prime locations.
City-Wise Breakdown: Delhi-NCR Takes the Lead in Retail Expansion
The Delhi-National Capital Region emerged as the frontrunner in this retail leasing boom, recording the highest absorption at 3.02 million square feet in 2025. Following closely were Bengaluru with 2.97 million square feet and Hyderabad at 2.91 million square feet, showcasing the southern cities' vibrant retail markets.
Mumbai, India's financial capital, accounted for 2.1 million square feet of retail space leasing. Other cities contributing to this upward trend included Kolkata at 0.65 million square feet, Chennai with 0.59 million square feet, and Pune at 0.24 million square feet.
Supply Dynamics and Market Composition
According to data from real estate consultant JLL India, the new supply of retail space reached 6.3 million square feet last year, creating ample opportunities for expansion and directly driving the heightened leasing activity. By the conclusion of 2025, the total retail space available in shopping malls across these top seven cities stood at nearly 92 million square feet, indicating a mature and growing market infrastructure.
Rahul Arora, Senior Managing Director for Karnataka and Kerala at JLL, highlighted to news agency PTI that demand from domestic retailers continued to accelerate remarkably, accounting for a substantial 82% of the gross leasing activity recorded in 2025. This demonstrates the confidence and expansion plans of homegrown brands across various retail segments.
Furthermore, the Indian retail landscape attracted significant international interest, with 29 new foreign brands making their entry into the country last year – the highest number recorded in the past five years. This influx underscores India's growing appeal as a lucrative market for global retailers seeking growth opportunities.
Leasing Distribution Between Malls and High Streets
Gross leasing figures encompass space leased across multiple retail formats including shopping malls, high streets, and prime retail developments. The distribution between these formats revealed interesting patterns:
- Shopping malls contributed 45% of the total leasing activity in 2025
- High streets accounted for 48% of the leasing, slightly edging out malls
- The remaining 7% was attributed to other prime retail developments
This balanced distribution indicates that both organized retail spaces and traditional high street locations remain attractive to retailers, each offering distinct advantages for different types of businesses and consumer engagement strategies.
The comprehensive data suggests that India's retail real estate sector is experiencing a healthy recovery and expansion phase, with multiple factors converging to create favorable conditions for both property developers and retail brands looking to establish or expand their presence in key urban markets.
