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India's Retail Sector Soars: Leasing Jumps 69% as Global Brands Tap into Rising Demand
30 Jul
Summary
- India's retail sector witnessed a 69% year-on-year jump in retail space leasing in the first half of 2025.
- Bengaluru and Delhi NCR led the growth, with fashion, food, and jewellery being the most popular retail categories.
- The retail sector is expected to remain strong, with 5.9 million sq ft of new supply scheduled in the second half of 2025.
India's retail sector is experiencing rapid expansion, driven by strong consumer demand and evolving shopping preferences in urban centers. In the first half of 2025, the top seven Indian markets recorded a 69% year-on-year jump in retail space leasing, reaching 5.7 million sq ft. This volume is already 70% of the total leasing seen in 2024.
Bengaluru and Delhi NCR dominated the growth, accounting for a combined 46% of the leasing activity. While Delhi NCR saw strong uptake by food and beverage players, Bengaluru witnessed steady expansion in jewellery and home furnishings. Other major markets, such as Hyderabad and Mumbai, also saw significant leasing activity.
The retail sector is expected to remain strong through the year-end, with 5.9 million sq ft of new supply scheduled in the second half of 2025 across key cities. Fashion and apparel led the leasing, followed by food and beverage, and jewellery. The shift in tenant mix reflects the evolving consumer spending patterns and brand strategies in the Indian market.
