Did India’s Retail Sector Achieve 54% Leasing Growth in 2025?
Synopsis
India's retail sector is on the rise! With a stunning 54% increase in leasing growth in 2025, it hits a three-year high. Discover how evolving consumer trends and robust economic factors are reshaping the retail landscape across major cities.
Key Takeaways
54% year-on-year growth in retail leasing volume 12.5 million sq. ft. total gross leasing in 2025 15 new shopping malls opened in major cities Shopping malls captured 45% of leasing activity D2C brands significantly expanding physical presence
Mumbai, Jan 27 (NationPress) The year 2025 witnessed an outstanding 54% year-on-year increase in gross leasing volume across India, marking a three-year peak for the retail sector, as revealed by a report on Tuesday.
The brick-and-mortar retail landscape in the top seven cities of India reached a remarkable three-year high, with gross leasing volume totaling 12.5 million square feet in 2025, according to a report from JLL.
This significant growth reflects the unyielding confidence of retailers across major metropolitan areas and aggressive expansion strategies, signifying India’s evolving consumption narrative amid global uncertainties.
A robust economic environment, coupled with increasing discretionary spending, is propelling this leasing boom, with offline retail formats seeing a surge of premium brands that enjoy strong consumer loyalty, the report stated.
India's retail sector continues to follow a strong growth trajectory, supported by substantial supply increases of 6.3 million square feet that have enabled aggressive retailer expansion.
In 2025, Delhi NCR, Hyderabad, and Mumbai saw the opening of 15 shopping malls, collectively enhancing the nation’s overall mall inventory. By the end of 2025, the mall stock in the top seven cities reached nearly 92 million square feet.
Shopping malls accounted for 45% of the total leasing activity in 2025, while high streets held a commanding 48% share.
“Although fashion and apparel (34%) and food and beverage (20%) together represented over half of the annual leasing, the share of fashion and apparel has decreased from 41% in 2023 to 34% in 2025. It still holds the leading position due to demand from well-known domestic and D2C brands,” stated Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Another noteworthy trend observed this year was the rapid expansion of direct-to-consumer (D2C) brands, which accounted for 0.9 million square feet of gross leasing volume, according to Das.
Domestic retailers have continued to drive demand, accounting for 82% of the gross leasing activities in 2025. Over the past five years, the Indian retail sector has attracted $2.3 billion in institutional investments.
Point of View
It’s imperative to recognize the vibrant growth of India's retail sector. The significant leasing activity not only showcases economic resilience but also reflects changing consumer behaviors. With a focus on innovation and investment, the retail landscape is poised for further expansion, reinforcing India's position in the global market.
NationPress
20 Jun 2026
Frequently Asked Questions
What is the growth percentage of India's retail leasing in 2025?
India's retail leasing grew by 54% year-on-year in 2025.
What was the total gross leasing volume in 2025?
The total gross leasing volume reached 12.5 million square feet in 2025.
Which cities saw the most significant retail expansion?
Delhi NCR, Hyderabad, and Mumbai saw major retail expansions with the opening of 15 shopping malls.
What percentage of total leasing activity was captured by shopping malls?
Shopping malls accounted for 45% of the total leasing activity in 2025.
How much institutional investment has the Indian retail sector seen in the last five years?
The Indian retail sector has attracted $2.3 billion in institutional investment over the past five years.
