India’s retail sector leased 2.6 million square feet in the second quarter of 2025. Full-year leasing for fiscal year 2025 is expected to exceed 10 million square feet. This growth is fueled by new mall openings in major cities. JLL reported a 69% year-over-year increase in retail space leasing for the first half of 2025. The top seven cities saw 5.7 million square feet leased during this period. Quarter two leasing represented a 15% decrease from the first quarter. This dip was due to limited new supply.
New mall supply grew by 165% year-over-year in the first half of 2025. Significant new malls opened in Mumbai, Delhi NCR, and Hyderabad early in the year. The first half of 2025 has already reached 70% of last year’s total leasing volume. Last year’s annual leasing volume was 8.1 million square feet.
Bengaluru and Delhi NCR led retail leasing in quarter two. They accounted for 46% of total leasing volume. Bengaluru saw high demand for jewelry and home furnishings. Food and beverage outlets drove retail leasing in Delhi NCR. Hyderabad and Mumbai each added about 0.5 million square feet of leased space. Chennai and Kolkata showed moderate growth.
Fashion and apparel were the top leasing categories. They made up 33% of total leasing in quarter two. Food and beverage followed at 22%. Jewelry secured the third spot with a 9% share. This sector leased 0.23 million square feet. Demand was strongest in South India and Delhi NCR. Several European jewelry brands entered the Indian market. Local brands were also highly active.
Domestic retailers accounted for 85% of the market share in quarter two. International brands expanded their presence with 13 new entries. Seven of these new brands were in the food and beverage sector. Global retailers leased a total of 0.4 million square feet.