Last updated : January 29, 2026 3:12 pm
Fresh retail supply in 2025 stood at 4.3–6.3 million sq. ft, led by Hyderabad with over half the additions, followed by Mumbai and Delhi NCR, which together saw 15 new malls open.
India’s retail leasing saw a strong jump in 2025, touching around 8.9 to 12.5 million square feet, the highest level in three years. This was more than a 50% increase compared to 2024, driven by the opening of new retail spaces and brands expanding their stores across major cities.
Fresh retail supply during the year ranged between 4.3 million and 6.3 million sq. ft. Hyderabad accounted for more than half of the new additions, followed by Mumbai and Delhi NCR. Delhi NCR, Hyderabad and Mumbai together saw the opening of 15 new shopping malls in 2025. By the end of the year, mall stock across the top seven cities stood close to 92 million sq. ft. In the second half of 2025, around 2.1 million sq. ft of new space became operational, while leasing absorption reached nearly 5.6 million sq. ft.
Hyderabad, Delhi NCR and Bengaluru lead leasing
Leasing activity was led by Hyderabad, Delhi NCR and Bengaluru. Delhi NCR and Bengaluru contributed about 24% each to total leasing, followed closely by Hyderabad at 23%. Another estimate placed Hyderabad at the top with a 34% share, followed by Delhi NCR at 20% and Chennai at 16%. Mumbai contributed about 17%, while Chennai, Kolkata and Pune recorded lower shares due to limited new supply.
By format, shopping malls made up nearly 45% of total leasing, while high streets accounted for about 48%. Malls were the preferred choice in Delhi NCR and Hyderabad, while Bengaluru saw stronger demand for high-street locations.
“With India crossing nearly 9 million square feet of leasing in 2025 and a 45 per cent rise in the July to September quarter alone to 2.41 million square feet, the strength of the retail leasing market is clearly reflected in the numbers, and demand has remained strong across both malls and high streets,” shared Ankit Sharma, SVP-Leasing of Elan Group.
Fashion, F&B and jewellery drive demand
Fashion and apparel remained the largest category, accounting for 34% to 48% of total leasing. Store launches included sustainable labels, streetwear, ethnic wear, athleisure, luxury and D2C brands. Food and beverage (F&B) was the second-largest contributor, with a 12% to 20% share. Brands preferred large-format outlets in malls and prominent high-street locations. Jewellery followed with an 8% share, supported by expansion from lab-grown diamond brands.
“India’s retail sector continues to demonstrate strong momentum, driven by robust leasing activity and sustained expansion from both domestic and global brands,” said Girish Kamble, CEO- West of Tribeca Developers. What’s especially encouraging is the growing demand for modern, branded, and experiential retail environments - formats that elevate convenience, curation, and consumer engagement.
D2C expansion and the rise of experience-led retail spaces
D2C brands contributed about 0.9 million sq. ft of total leasing and recorded 48% year-on-year growth. Another estimate showed D2C brands accounting for 27% of total leasing in 2025.
At the same time, retailers used tools such as virtual try-ons, generative styling platforms and predictive inventory models. Entertainment zones in malls used formats such as edutainment, virtual reality and RFID-based loyalty systems.
Looking ahead, the retail pipeline remains healthy, with more than 47 million sq. ft of retail space under construction. It is expected to be operational by 2030.