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Table of Content
- Why Did Retail Leasing Surge in 2025?
- How Much Retail Space Was Leased Across India in 2025?
- Which Cities Led Retail Leasing Activity?
- Why Did Delhi NCR and Bengaluru Drive Retail Leasing Demand?
- Malls vs High Streets: Where Is Retail Demand Concentrated?
- What Drove the Retail Leasing Revival After 2024?
- Which Retail Segments Fueled Leasing Growth?
- New Retail Supply and Mall Stock Trends
- Retail Leasing Momentum in Q4 2025
- What Is the Outlook for Retail Leasing in India?
- Conclusion
Retail leasing in India rebounded strongly in 2025, reaching 12.5 million square feet, the highest level in three years. Driven by robust consumer spending, domestic brand expansion, and improved supply, retail leasing activity surged over 50% year-on-year, with Delhi NCR and Bengaluru emerging as the biggest demand centres. According to industry data, renewed retailer confidence and premium mall launches helped accelerate leasing across malls and high streets despite ongoing global uncertainty.
Why Did Retail Leasing Surge in 2025?
After a subdued 2024, retail leasing staged a sharp comeback in 2025 due to a combination of structural and cyclical factors:
- Recovery in discretionary spending
- Expansion plans by Indian brands
- Aggressive store rollouts by D2C players
- Entry of new international retailers
- Availability of high-quality retail supply
Together, these drivers pushed retail leasing to its strongest level since 2022.
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How Much Retail Space Was Leased Across India in 2025?
Gross retail leasing across the top seven Indian cities increased from 8.1 million sq ft in 2024 to 12.5 million sq ft in 2025, marking a 54% annual rise.
Retail Leasing Growth Snapshot
|
Year |
Retail Leasing (mn sq ft) |
YoY Growth |
|
2023 |
9.2 |
— |
|
2024 |
8.1 |
-12% |
|
2025 |
12.5 |
+54% |
Retail leasing includes malls, high streets, and prime retail developments.
Which Cities Led Retail Leasing Activity?
Retail leasing was heavily concentrated in a few major urban markets.
City-wise Retail Leasing in 2025
|
City |
Leasing Volume (mn sq ft) |
|
Delhi NCR |
3.02 |
|
Bengaluru |
2.97 |
|
Hyderabad |
2.91 |
|
Mumbai |
2.10 |
|
Kolkata |
0.65 |
|
Chennai |
0.59 |
|
Pune |
0.24 |
Delhi NCR, Bengaluru, and Hyderabad together accounted for 71% of total retail leasing, highlighting their dominance in India’s retail real estate landscape.
Why Did Delhi NCR and Bengaluru Drive Retail Leasing Demand?
- Delhi NCR benefited from multiple mall launches and strong demand from fashion and F&B brands
- Bengaluru stood out for its preference toward high-street retail locations
- Hyderabad saw consistent mall-led leasing supported by improving infrastructure
Mumbai contributed 17% of leasing, while other cities saw muted activity due to supply constraints.
Malls vs High Streets: Where Is Retail Demand Concentrated?
Retail leasing in 2025 was almost evenly split between malls and high streets:
- High streets: 48%
- Shopping malls: 45%
- Other formats: 7%
This balance reflects evolving retailer strategies, with malls offering scale and experience, while high streets provide visibility and flexibility.
What Drove the Retail Leasing Revival After 2024?
Key factors behind the rebound in retail leasing include:
- Rising disposable incomes
- Growth in premium consumption
- Strong festival-season sales
- Improved mall design and tenant mix
- Faster completion of institutional-grade retail assets
These elements collectively restored retailer confidence and encouraged long-term leasing commitments.
Which Retail Segments Fueled Leasing Growth?
Domestic Brands Lead Retail Leasing
Indian retailers accounted for 82% of total retail leasing in 2025, with leased space crossing 10 million sq ft, up from 6.5 million sq ft in 2024.
D2C and F&B Accelerate Expansion
- Fashion and apparel: 34% share
- Food & beverage: 20% share
- D2C brands leased nearly 0.9 million sq ft, driven by beauty, jewellery, wellness, and lifestyle categories
Foreign Brands Return to Expansion Mode
Foreign retailers increased leased space by 36% YoY, with 29 new international brands entering India the highest in five years.
New Retail Supply and Mall Stock Trends
Mall Launches in 2025
- 15 new malls launched across Delhi NCR, Hyderabad, and Mumbai
- Around 6.3 million sq ft of fresh retail supply added
Total Retail Stock
By the end of 2025, the top seven cities together had nearly 92 million sq ft of operational mall stock, strengthening India’s organised retail ecosystem.
Retail Leasing Momentum in Q4 2025
The fourth quarter emerged as the strongest period, recording 3.6 million sq ft of retail leasing, supported by festive demand and year-end store launches.
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What Is the Outlook for Retail Leasing in India?
Looking ahead:
- 47 million sq ft of mall space is under construction and expected by 2030
- Institutional investments in retail real estate have crossed $2.3 billion over five years
- Developers are increasingly focusing on experience-led, tech-enabled retail formats
Future-ready assets are expected to attract the bulk of retail leasing and capital inflows.
Conclusion
Retail leasing in India reached a three-year high in 2025, underpinned by strong domestic demand, renewed brand confidence, and improved supply quality. With Delhi NCR and Bengaluru leading the charge, the sector is well-positioned for sustained growth. As consumer preferences evolve and institutional investments rise, retail leasing is set to remain a key pillar of India’s commercial real estate story.
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Ans 1. Retail leasing across India’s top seven cities reached 12.5 million square feet in 2025. This marked a 54% year-on-year increase and the highest leasing volume recorded in the last three years, reflecting a strong recovery in retailer confidence.
Ans 2. Retail leasing rebounded due to improved consumer spending, aggressive expansion by Indian brands, D2C store rollouts, new international brand entries, and the availability of high-quality mall and high-street retail space.
Ans 3. Delhi NCR and Bengaluru led retail leasing activity in 2025, followed closely by Hyderabad. Together, these three cities accounted for over 70% of total retail leasing, making them the primary demand centres in India.
Ans 4. Delhi NCR benefited from multiple new mall launches, strong fashion and F&B demand, and large-format retail developments. Improved infrastructure and a deep consumer base further supported leasing activity.
Ans 5. Bengaluru stood out due to strong preference for high-street retail, steady consumption by a young professional population, and expansion by fashion, lifestyle, and D2C brands.
Ans 6. Retail leasing in 2025 was nearly evenly split between malls and high streets. High streets accounted for about 48% of leasing, while shopping malls contributed around 45%, reflecting diversified location strategies by retailers.
Ans 7. Fashion and apparel brands led retail leasing, followed by food and beverage operators. D2C brands also played a significant role, especially in beauty, jewellery, wellness, and lifestyle categories.
Ans 8. Domestic brands dominated retail leasing in 2025, accounting for about 82% of total leased space. Indian retailers leased over 10 million square feet, driven by nationwide expansion strategies.
Ans 9. Yes, international retailers increased leasing activity by 36% year-on-year. In 2025, 29 new foreign brands entered India, the highest number seen in the past five years.
Ans 10. Around 6.3 million square feet of new retail supply was added in 2025, primarily through 15 new mall launches across Delhi NCR, Hyderabad, and Mumbai.
Ans 11. By the end of 2025, the top seven cities together had nearly 92 million square feet of operational shopping mall stock, strengthening India’s organised retail market.
Ans 12. Q4 2025 recorded the highest retail leasing at 3.6 million square feet, supported by festive-season sales and year-end store expansion by brands.
Ans 13. Retail leasing is expected to remain strong as nearly 47 million square feet of mall space is under construction and scheduled for completion by 2030. Experience-led retail formats and institutional investments are likely to drive future growth.
Ans 14. Yes, institutional investments in retail real estate have crossed $2.3 billion over the last five years, reflecting growing confidence in India’s consumption-led growth story.