India’s retail market staged a strong comeback in 2025, with robust demand for real estate space from both domestic and international brands driving expansion across the country’s major cities.Retailers showed renewed confidence in physical store growth, reflecting rising consumption and the growing appeal of organized retail.The sector’s momentum translated into a 54% year-on-year jump in gross leasing during the year, reaching a total of 12.5 million sq ft, showed data from JLL India. The December quarter emerged as the best performing, with 3.6 million sq. ft of space leased.“While the domestic retail growth story remains strong, foreign brands are not too far behind. As many as 29 new foreign brands entered India during the year, the highest in the past five years… The structural strength of India’s retail sector coupled with rising brand awareness will aid the entry of more foreign players in years to come,” said Rahul Arora, Head – Office Leasing & Retail Services, Senior MD (Karnataka, Kerala), India, JLL.Domestic retailers led the expansion, making up 82% of gross leasing in 2025, with take-up increasing from 6.5 million sq ft in 2024 to over 10 million sq ft. Foreign retailers also expanded, achieving 36% on-year growth, with 29 new brands including Bershka, Nespresso, COS, Lego, and NEXT entering India during the year.Live Events “The strong rebound in retail leasing reflects a clear shift toward organised, experience-led retail. Demand from domestic brands and the growing interest of global players are translating into faster absorption, especially in well-located, institutional-grade assets. What we are seeing is not just expansion, but a preference for quality retail environments that can support long-term brand growth,” said Anjiv Kumar, COO, Shopping Centres Association of India (SCAI).Key markets of Delhi-NCR, Bengaluru, and Hyderabad together accounted for 71% of total leasing, with Delhi NCR and Bengaluru each capturing 24%, and Hyderabad close behind at 23%.The Mumbai market contributed 17%, while Kolkata, Chennai, and Pune accounted for smaller shares of 5%, 5%, and 2% respectively, limited by constrained supply and minimal brand entry activity, the data showed.“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 stores… There is a substantial 48% annual growth in leasing by D2C brands in India fuelled by categories such as fashion and apparel, jewellery and beauty, cosmetics and wellness,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.The growth was supported by 6.3 million sq. ft of new retail supply and the launch of 15 shopping malls across Delhi-NCR, Hyderabad, and Mumbai, expanding total mall stock in the top seven cities to nearly 92 million sq ft by year-end. Shopping malls captured 45% of leasing activity, while high streets remained in strong demand, accounting for 48%.The leasing activity reflects a structural shift in Indian retail, driven by organized retail preference, premium infrastructure, and institutional-grade malls. With 40 million sq ft of superior-quality mall space and 47 million sq ft under construction across top cities, analysts expect continued expansion and strong demand for future-ready retail assets.



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