Mumbai, Jan 28: Mumbai emerged as one of the key contributors to India’s retail leasing rebound in 2025, as the sector clocked a three-year high with a 54% year-on-year growth in gross leasing, according
to real estate consultancy JLL. The surge signals renewed confidence among retailers, supported by fresh mall supply and rising consumer spending in major metros, including the country’s financial capital.
Sharp recovery after 2024 moderation
After moderating in 2024, India’s retail leasing activity rebounded sharply in 2025, driven by a resilient economy and strong demand for offline retail formats. Mumbai accounted for 17% of the total leasing activity among the top seven cities, placing it among the leading retail markets alongside Delhi NCR, Bengaluru and Hyderabad.
Mall supply boosts expansion
The city was also part of a broader supply push, with 15 shopping malls launched across Delhi NCR, Hyderabad and Mumbai during the year, contributing to a national mall stock of nearly 92 million sq ft by the end of 2025. The availability of premium, institutional-grade mall space encouraged retailers to expand aggressively in prime urban locations.
High streets and malls dominate
Across India, shopping malls and high streets dominated leasing activity, together accounting for over 90% of transactions. While malls captured 45% of leasing, high streets held a slightly higher share at 48%, reflecting continued interest in prominent urban retail corridors — a trend visible in Mumbai’s established commercial and mixed-use precincts.
Fashion leads, F&B gains ground
Sectorally, fashion and apparel continued to lead leasing demand, though its share declined compared to previous years, while food and beverage outlets expanded rapidly, reshaping space requirements in malls and high streets alike. Direct-to-consumer brands also accelerated their physical expansion, taking up significant retail space during the year.
“While fashion & apparel (34%) and food & beverage (20%) together comprised more than half of the annual leasing, the share of fashion and apparel has moderated from 41% in 2023 to 34% in 2025, though it still retains the top slot due to demand emanating from renowned domestic and D2C brands. During the same horizon of three years, it is F&B that has gained in share from 16% in 2023 to 20% in 2025, emerging as a clear winner in terms of redefining retail space requirements. Another interesting trend that became more pronounced during the year was the direct-to-consumer (D2C) brands going full throttle in terms of setting up physical store footprint, garnering 0.9 million sq ft of gross leasing volume. There is a substantial 48% annual growth in leasing by D2C brands in India, fuelled by categories such as fashion and apparel, jewellery and beauty, cosmetics and wellness,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Domestic retailers lead growth
Domestic retailers remained the primary growth engine, accounting for over four-fifths of leasing activity nationwide — a trend mirrored in Mumbai’s retail market, where Indian brands expanded both mall-based and high-street footprints.
“Demand from domestic retailers continued to accelerate as they accounted for 82% of 2025’s gross leasing activities. High streets as well as shopping malls witnessed vibrant demand from domestic retailers for large-sized stores in the year. From 6.5 million sq ft of leasing in 2024, the retail space take-up by indigenous brands exceeded more than 10 million sq ft in 2025. While the domestic retail growth story remains strong, foreign brands are not too far behind. Retail spaces leased by foreign brands experienced a 36% year-on-year growth in 2025. As many as 29 new foreign brands entered India during the year, the highest in the past five years. Leading names such as Bershka, Nespresso, COS, Lego and NEXT came to India in 2025. The structural strength of India’s retail sector, coupled with rising brand awareness, will aid the entry of more foreign players in years to come,” said Rahul Arora, Head – Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
Outlook remains strong
Looking ahead, JLL noted that Mumbai stands to benefit from a strong pipeline of organised retail development as consumer preferences evolve towards experience-driven destinations. With nearly 47 million sq ft of mall space under construction across top cities by 2030, developers are increasingly focusing on technology, hospitality and experiential elements to future-proof assets.
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The consultancy added that India’s retail sector has attracted USD 2.3 billion in institutional investment over the past five years, and future-ready retail assets in markets such as Mumbai are likely to draw a growing share of global capital.
Comment by Mr. Shilpin Tater, Managing Director, Superb Realty
“The strong rebound in retail leasing highlighted by JLL reinforces Mumbai’s position as one of India’s most resilient and dynamic retail markets. A robust year-on-year growth in leasing activity reflects renewed retailer confidence, supported by rising consumer spending, quality mall supply, and the city’s ability to consistently attract both domestic and global brands.
What is particularly encouraging is the growing dominance of experience-led formats, with food & beverage and D2C brands expanding aggressively across malls and high streets. This shift is redefining how retail spaces are planned, with a greater emphasis on design, flexibility, and customer engagement. Mumbai’s established high-street corridors and emerging mixed-use destinations are well placed to benefit from this evolution.
As organised retail development gains momentum and institutional investment continues to flow into future-ready assets, developers must focus on creating differentiated, technology-enabled, and experiential destinations. For markets like Mumbai, this presents a significant opportunity to build retail ecosystems that are not only commercially robust but also aligned with changing consumer aspirations.”
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