India’s retail sector hits 3-year high with 54 pc leasing growth in 2025

Mumbai:The year 2025 delivered exceptional 54 per cent year-on-year growth in gross leasing volume in India as retail sector achieved a three-year peak in gross leasing activity, a report showed on Tuesday. Brick and mortal retail in the top seven cities of India reached a three-year high as gross leasing volume hit a total of 12.5 million square feet in 2025, according to a JLL report. This surge reflects unwavering retailer confidence across key metropolitan markets and aggressive expansion strategies, as India redefines its consumption narrative against an uncertain global backdrop. A resilient economy, coupled with rising discretionary spending, is fuelling this leasing renaissance, with offline retail formats witnessing an influx of premium brands commanding strong consumer loyalty, said the report. India’s retail sector maintains its robust growth trajectory, driven by substantial supply additions of 6.3 million sq. ft that have facilitated aggressive retailer expansion. Delhi NCR, Hyderabad, and Mumbai witnessed the launch of 15 shopping malls in 2025, collectively contributing to the nation’s overall mall inventory. As of end of 2025, the mall stock in the top seven cities stood at nearly 92 million square feet. Shopping malls captured 45 per cent of the total leasing activity in 2025, while high streets commanded a dominant 48 per cent share. “While fashion and apparel (34 per cent) and food and beverage (20 per cent) together comprised more than half of the annual leasing, the share of Fashion and Apparel has moderated from 41 per cent in 2023 to 34 per cent in 2025 though it still retains the top slot due to demand emanating from renowned domestic and D2C brands,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. 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, Das informed. Demand from domestic retailers continued to accelerate as they accounted for 82 per cent of 2025’s gross leasing activities. The Indian retail sector has witnessed $2.3 billion institutional investment during the last 5 years.