India’s retail sector continued its growth momentum in Q3 2025, supported by stable retailer demand and improved supply across key markets. Between July and September, the country’s top seven cities recorded 3.2 million sq ft of gross leasing, a 65 per cent year-on-year increase. Delhi NCR led the activity with a 35 per cent share, driven by strong retail uptake in two newly opened malls. With this quarterly performance, the nine-month gross leasing total has reached 8.9 million sq ft, already 110 per cent of the full-year leasing seen in 2024.

On a quarter-on-quarter basis, gross leasing rose 22 per cent, aided by 1.5 million sq ft of new supply in Delhi NCR and Hyderabad. Retailers who had postponed expansion due to earlier supply constraints were able to move ahead with new store launches. Shopping malls accounted for 53 per cent of quarterly leasing, while high streets contributed 41 per cent, reflecting strong interest in both formats.

Delhi NCR and Hyderabad lead leasing momentum Delhi NCR and Hyderabad emerged as the strongest markets in Q3 2025, with 35 per cent and 12 per cent shares respectively. While malls dominated activity in Delhi NCR, high streets saw increased demand in Hyderabad.

Mumbai saw 0.6 million sq ft of take-up, followed by Bengaluru at 0.4 million sq ft. Chennai and Kolkata recorded steady leasing compared to previous quarters, while Pune slipped slightly from its Q2 performance.

Fashion and apparel brands contributed 35 per cent of leasing in Q3, followed by food and beverage at 16 per cent, and daily-needs and grocery retailers at 11 per cent. Domestic brands remained the key demand drivers, absorbing 2.6 million sq ft, up 76 per cent year-on-year. Foreign brands accounted for 19 per cent of activity.

Direct-to-consumer brands continued to expand their offline presence across segments such as fashion, jewellery, beauty and wellness. Luxury retailers leased 0.2 million sq ft in the January–September period, marking a 19 per cent rise over last year.

Dr Samantak Das, Chief Economist and Head of Research & REIS, India, JLL, said demand from fashion, food and grocery retailers remained strong, with D2C brands set to increase their share of leasing. Rahul Arora, Head – Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL, added that domestic retailers remain a dominant force in leasing momentum.

Gross leasing set for a new record With an eight-quarter rolling average of 2–2.5 million sq ft, the sector is on track to end 2025 with 10.5–11.5 million sq ft of gross leasing—surpassing earlier expectations. A further 4.7 million sq ft of retail supply is set to enter the market in the final quarter of 2025.

Looking ahead, nearly 37 million sq ft of new mall supply is expected across the top seven cities by 2029. This fresh inventory, combined with upgrades to existing stock, will support long-term leasing activity and align with retailers’ expansion and omnichannel strategies.