The retail sector in India experienced a remarkable 54% year-on-year growth in gross leasing volume in 2025, reaching a three-year peak in activity. A JLL report revealed that brick-and-mortar retail in India’s top seven cities hit a total of 12.5 million square feet in gross leasing volume during the year. This surge signifies strong retailer confidence and aggressive expansion strategies amidst a changing global landscape.
A resilient economy and increasing discretionary spending are driving this leasing boom, with offline retail formats attracting premium brands that enjoy significant consumer loyalty. The retail sector in India continues on a path of robust growth, supported by significant supply additions totaling 6.3 million square feet that have facilitated extensive retailer expansion activities.
In 2025, Delhi NCR, Hyderabad, and Mumbai saw the introduction of 15 new shopping malls, collectively contributing to the nation’s mall inventory, which stood at nearly 92 million square feet by the end of the year. Shopping malls accounted for 45% of the total leasing activity, while high streets held a dominant 48% share in the market.
Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, noted that fashion and apparel, along with food and beverage, comprised over half of the annual leasing activities. Although the share of fashion and apparel decreased from 41% in 2023 to 34% in 2025, it remained the top category due to demand from prominent domestic and direct-to-consumer (D2C) brands.
An emerging trend in 2025 was the significant presence of D2C brands in physical retail, with 0.9 million square feet of gross leasing volume attributed to them. Domestic retailers continued to drive demand, representing 82% of the year’s gross leasing activities. The Indian retail sector has attracted $2.3 billion in institutional investments over the past five years.
