New Delhi, January 25: The top seven Indian cities are projected to gain nearly 9 million sq ft of new retail space by 2025, with gross leasing volume anticipated to exceed 2023’s 8.7 million sq ft, according to JLL India, a commercial real estate and investment management firm. While international retailers continue to show interest, domestic retailers led the gross leasing, accounting for over 80 percent with approximately 6.5 million sq ft leased in 2024. The cities included in this analysis are Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Pune, and Hyderabad.
The report indicates that the gross leasing volume in 2025 is expected to surpass the 2023 levels, driven by ongoing interest from international brands and robust leasing activity from domestic retailers. In 2024, retailers leased 8.1 million sq ft of space in shopping centers and prominent thoroughfares across these top seven cities. Despite a 6 percent moderation in gross leasing compared to 2023, the retail sector maintained its momentum, even with a limited influx of high-quality new spaces.
Bengaluru accounted for 34 percent of the total leasing activity, followed by Delhi NCR and Mumbai, each with a 14 percent share. This concentration of 62 percent of total retail space leasing in these three major cities highlights the strong consumer demand in prime retail areas. Notably, Bengaluru alone surpassed the combined leasing volume of Delhi NCR and Mumbai, with a significant 2.8 million sq ft share. Additionally, the shares of other cities like Hyderabad and Chennai increased from 10 percent and 5 percent in 2023 to 14 percent and 10 percent, respectively, by the end of 2024.
“2023 marked a five-year high with 6.2 million sq ft of new retail supply becoming operational across the top seven cities. The introduction of 16 new retail developments in 2023 supported retailers’ expansion plans, leading to a gross leasing peak of 8.7 million sq ft,” stated Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL. “However, new retail supply in 2024 saw a significant decline of 73 percent year-on-year, which hindered the take-up of quality retail spaces by interested retailers. Despite this drop, leasing only moderated by 6 percent compared to 2023, reaching 8.1 million sq ft. Retailer demand for prime locations remained strong throughout 2024, with categories like Fashion and Apparel continuing to dominate the retail leasing landscape.” In 2024, 27 new international brands entered the Indian market, nearly doubling the previous year’s figures.
