Retail Space Leasing Up 54% in 2025: JLL Report

New Delhi, Jan 27 (PTI) Leasing of retail space in malls and high streets rose 54 per cent last year across seven major cities on better supply and strong demand from retailers, according to JLL India.

Real estate consultant JLL India on Tuesday noted that brick and mortal retail in the top seven cities was at a three-year high with gross leasing volume rising to 12.5 million sq ft in 2025 from 8.1 million square feet in the preceding year.

Gross leasing includes real estate space leased in malls, high streets and prime retail developments. Out of the total leasing in 2025, shopping malls contributed 45 per cent while high streets 48 per cent.

As per the data, the leasing of retail spaces in Delhi-NCR was highest at 3.02 million sq ft in 2025, followed by 2.97 million sq ft in Bengaluru, 2.91 million sq ft in Hyderabad and 2.1 million sq ft in Mumbai.

Leasing stood at 0.65 million sq ft in Kolkata, 0.59 million sq ft in Chennai and 0.24 million sq ft in Pune.

The consultant noted that new supply of retail spaces stood 6.3 million sq ft last year, leading to higher leasing activities.

During 2025, Delhi NCR, Hyderabad, and Mumbai witnessed the launch of 15 shopping malls, collectively contributing to the nation's overall mall inventory.

As of the end of 2025, the total retail spaces in shopping malls across the top seven cities stood at nearly 92 million square feet.

The availability of premium institutional-grade mall space encouraged retailers to accelerate store launches in prime locations.

"Demand from domestic retailers continued to accelerate as they accounted for 82 per cent of 2025's gross leasing activities," said Rahul Arora, Head, Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL. As many as 29 new foreign brands entered India during 2025, the highest in the past five years, he added.

Commenting on the report, Shriram PM Monga, Co-founder & Principal Consultant at SRED Real Estate Advisory,said this demand is being driven by the rise of experiential retail and robust momentum in the F&B (food and beverages) segment.

"Together, these trends are translating into improved occupancies, stronger cash flows, and renewed confidence in mall reinvestment and asset upgradation," he added.

Gaurav Bansal, AVP and Head Leasing at Trehan Iris, said the demand is driven by renewed consumer confidence and retailers' increased focus on strengthening their physical brand presence.

Robin Mangla, President of M3M India, said, "Malls are reinforcing their role as lifestyle destinations, while high streets remain relevant for convenience and frequency-led retail."

Girish Kamble, CEO- West, Tribeca Developers, said the retail sector continues to demonstrate strong momentum, driven by robust leasing activity and sustained expansion from both domestic and global brands.

Aman Sharma, Founder and Managing Director, Aarize Group noted that retailers are more discerning, preferring assets offering longer-term brand visibility and operational efficiency. PTI MJH DR

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