India’s retail real estate sector recorded its strongest performance in three years in calendar year 2025, with gross leasing activity rising 54 per cent year-on-year, according to a report by JLL. The sharp rebound underscores growing retailer confidence and aggressive expansion strategies across major cities, even as global economic uncertainty persists.

After achieving 8.7 million sq ft of gross leasing in 2023, retail absorption moderated to 8.1 million sq ft by the end of 2024. This trend reversed decisively in 2025, supported by a resilient domestic economy and rising discretionary consumption. Offline retail formats, particularly premium brands with strong consumer loyalty, led the resurgence, signalling a renewed focus on physical retail experiences.

Supply additions played a critical role in sustaining this momentum. Around 6.3 million sq ft of new retail space was added during the year, enabling leasing volumes to surpass the previous year’s total. Delhi NCR, Hyderabad and Mumbai together saw the launch of 15 shopping malls in 2025, significantly expanding the country’s organised retail footprint. By the end of the year, total mall stock across the top seven cities reached nearly 92 million sq ft, encouraging retailers to accelerate store openings in prime, institutional-grade developments.

Shopping malls accounted for 45 per cent of total leasing activity in 2025, while high streets commanded a slightly higher share of 48 per cent, reflecting balanced demand across formats. High-quality mall supply, in particular, supported the expansion plans of national and international brands.

Among cities, Delhi NCR, Bengaluru and Hyderabad emerged as the primary growth drivers. Delhi NCR and Bengaluru each contributed 24 per cent of total leasing, followed closely by Hyderabad at 23 per cent. Mumbai accounted for 17 per cent, while Kolkata, Chennai and Pune recorded single-digit shares, largely due to limited new supply and subdued brand entry.

JLL noted that while shopping malls dominated leasing in Delhi NCR and Hyderabad, high street locations remained the preferred expansion avenue in Bengaluru, highlighting city-specific retail dynamics shaping India’s evolving consumption landscape.