Did India's Retail Sector Leasing Really Surge 65% to 3.2 Million Sq Ft in July-September?
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Synopsis
Discover the latest insights into India's retail sector as leasing activity skyrockets in Q3 2025, hitting a staggering 3.2 million square feet. This surge reflects a significant year-on-year growth of 65%, driven by key regions and sectors. Uncover the trends shaping the market and what lies ahead for D2C brands.
Key Takeaways
- India's retail leasing surged to 3.2 million sq ft in Q3 2025.
- Year-on-year growth of 65% demonstrates robust demand.
- Delhi-NCR accounted for 35% of the leasing activity.
- New supply of 1.5 million sq ft enables expansion for retailers.
- D2C brands are increasingly investing in physical stores.
New Delhi, Nov 14 (NationPress) The retail landscape in India experienced a significant surge in demand during Q3 2025, achieving a remarkable gross leasing volume of 3.2 million square feet across the top seven cities. This figure marks an impressive 65% year-on-year growth, according to a report released on Friday.
When compared to the previous quarter, the Q3 leasing volume shows a robust increase of 22%, as reported by JLL India, a leading commercial real estate firm.
The Delhi-NCR region emerged as the leader, accounting for 35% of total leasing in Q3, primarily fueled by the opening of two newly constructed malls.
Moreover, the leasing activity this quarter has elevated India's nine-month gross leasing to 8.9 million square feet, which is already 110% of the total for the full year of 2024.
With a fresh supply of 1.5 million sq. ft introduced in both Delhi NCR and Hyderabad, retailers who had previously faced supply issues are now able to proceed with new store openings in critical micro markets.
Following Delhi, Hyderabad contributed 12% to Q3 leasing, while Mumbai and Bengaluru recorded 0.6 million and 0.4 million square feet of retail space uptake, respectively.
During the July-September quarter, the fashion and apparel sector dominated leasing, accounting for 35%, with food and beverage following at 16%. Daily needs and grocery stores represented 11% of leasing activity, as highlighted in the report.
“The third quarter witnessed an increased demand from retailers focused on daily needs and groceries, who typically require large spaces and often serve as anchor tenants in high-end retail developments,” stated Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.
Additionally, direct-to-consumer (D2C) brands are investing heavily in their click-and-mortar strategies, steadily expanding their physical presence in sectors such as fashion, jewelry, cosmetics, and wellness, the report noted.
“Looking forward, D2C brands are poised to capture an even larger share of the overall gross leasing activities,” Das concluded.
Point of View
We recognize that the retail sector's resurgence reflects a broader economic recovery. The significant growth in leasing not only indicates consumer confidence but also highlights the evolving landscape of retail, particularly with the rise of D2C brands. This is a pivotal moment for investors and stakeholders in the sector.
NationPress
14/11/2025
Frequently Asked Questions
What was the gross leasing volume for India's retail sector in Q3 2025?
The gross leasing volume for India's retail sector in Q3 2025 reached 3.2 million square feet.
Which region led the leasing activity in Q3 2025?
Delhi-NCR led the leasing activity, accounting for 35% of the total leasing.
How much new supply was introduced in the retail sector during Q3 2025?
A total of 1.5 million square feet of new supply was introduced in Delhi NCR and Hyderabad.
What sectors dominated the leasing activity in Q3 2025?
The fashion and apparel sector dominated leasing with 35%, followed by food and beverage at 16%.
What does the future hold for D2C brands in India's retail leasing?
D2C brands are expected to capture an increasingly larger share of the overall gross leasing activity in the future.
