India’s brick-and-mortar retail sector saw a strong comeback in 2025, with gross leasing volumes rising 54 per cent year-on-year, according to a report by JLL. Leasing activity across the top seven cities
touched a three-year peak, underlining growing confidence among retailers despite global economic uncertainty.
Top Cities Drive Leasing Momentum
Total gross retail leasing reached 12.5 million square feet in 2025, supported by a resilient domestic economy and steady growth in discretionary spending. Offline retail formats benefited from renewed consumer footfalls, with premium brands continuing to attract loyal shoppers across key metropolitan markets.
Delhi NCR, Hyderabad and Mumbai led the expansion, with 15 new shopping malls becoming operational during the year. These additions pushed the overall mall stock in the top seven cities close to 92 million square feet by the end of 2025.
Malls and High Streets Lead the Way
Shopping malls accounted for 45 per cent of total leasing activity, while high streets remained the preferred choice with a dominant 48 per cent share. The strong presence of both formats highlights a balanced demand pattern across organised retail and traditional commercial corridors.
Fashion, F&B Still on Top
Fashion and apparel remained the largest contributor to leasing, making up 34 per cent of total activity in 2025, followed by food and beverage at 20 per cent. While the share of fashion leasing has moderated from 41 per cent in 2023, it continues to lead due to sustained demand from domestic and direct-to-consumer brands.
D2C Brands Expand Offline Footprint
An emerging trend during the year was the aggressive offline expansion by D2C brands, which together leased around 0.9 million square feet. Domestic retailers dominated the market, accounting for 82 per cent of total leasing activity in 2025.
