Retail Leasing in Top 7 Indian Cities Surges 69% YoY in H1 2025

India’s top seven cities recorded strong retail leasing activity in the first half of 2025 (January–June), with total space take-up reaching 5.7 million sq. ft, a sharp 69% year-on-year (YoY) increase over H1 2024.

In Q2 2025 (April–June), retail leasing stood at 2.6 million sq. ft, reflecting a moderate 17% YoY growth compared to Q2 2024. However, on a sequential basis, leasing activity in Q2 dipped by 15% from the previous quarter, according to a recent JLL report finding.

The surge in H1 numbers was primarily driven by strong momentum in Q1 2025 (January–March), which saw gross leasing of 3.1 million sq. ft- the highest for any quarter in the period helping lift the overall performance for the half-year.

Bengaluru & Delhi NCR Captured 46% Market Share

Bengaluru and Delhi NCR lead Q2 Expansion with 46% market share as regional hubs show distinct category preferences.

Across the top seven cities, Bengaluru and Delhi NCR together contributed 46% to the overall gross leasing volume for Q2 2025. While food and beverage as a category remained popular in Delhi NCR in terms of space take- up, jewellery and home furnishings retailers expanded steadily in Bengaluru during this period.

Hyderabad recorded nearly 0.5 million sq. ft. of retail space take-up primarily due to a new mall completion. Mumbai maintained its leasing momentum with ~0.5 million sq. ft leased across the city’s top malls and prominent high streets. Cities such as Chennai and Kolkata witnessed a slight uptick in retail spaces leased as compared to Q1 2025, whereas the retail leasing activity in Pune remained moderate. 

“Looking at the quarterly trends, fashion & apparel and food & beverage continued to be the leading retailer categories, contributing 33% and 22% respectively to the gross leasing total during April-June quarter. Unlike past trends, jewellery emerged as the third leading category, surpassing Entertainment, which typically used to be amongst the top three retailer categories until the first quarter of 2025. From a 16% share in gross leasing in Q1 2025, the share of Entertainment has dwindled to 6% in Q2 2025. Jewellery retailers commanded a 9% share in gross leasing with 0.23 million sq. ft of prime retail space consumed in the second quarter. While leasing in this category was largely dominated by indigenous brands opening new stores, mainly in southern cities of India, this quarter also saw a couple of European jewellery brands open new stores in Delhi NCR” said Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.

“While domestic retailers command an 85% market share in Q2 2025, the 15% international presence represents 0.4 million sq. ft. of prime retail space with 13 new global entrants—7 in F&B alone. Bengaluru, contributing nearly a quarter of national retail leasing and dominating jewellery and home furnishings expansion, exemplifies this trend as it partnered with Delhi NCR to capture 46% of Q2’s total leasing volume. India's strategic position for retail expansion is evidenced by international brand entry more than doubling year- over-year in H1 2025, driven by the perfect confluence of young demographics, rising disposable incomes, and premium consumption preferences that are particularly attractive in the current global economic landscape," said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.

Future Outlook

As per the report, nearly 5.9 million sq. ft of new retail supply to become operational in the second half of 2025 and will be spread across upcoming shopping malls in Delhi NCR, Bengaluru, Hyderabad and Pune and will support the entry and expansion of retailers in the near term. With these new additions to the retail stock, the gross leasing activity is expected to reach new heights and cross 10 million sq. ft annual mark in 2025.