During the January–March quarter, the Indian retail sector expanded by 169 per cent year over year due to the strong momentum in the opening of new retail stores in major cities.
In the first quarter of 2025, retailers leased 3.1 million square feet in high streets and malls in the top seven cities. The first quarter of 2025 saw the addition of 2 million square feet of new retail space.
The retail sector’s gross lease activity increased by 9% on a quarter-over-quarter (QoQ) basis, per the JLL India study. In India’s retail market, the most popular store categories were apparel and fashion.
Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, stated that brands that catered to fast fashion and contemporary styles dominated the space take-up as both new and established players in the Indian retail scene quickly increased their brick and mortar footprint to meet the needs of the younger demographic.
The number of new retail spaces being added reached a record high, even though the demand for retail space remained unchanged in the top seven cities.
Geographically speaking, 60 per cent of all leasing activity in India was concentrated in Bengaluru and Hyderabad. According to the survey, prominent high streets in both cities saw thriving leases in suburban micro-markets, with retailer categories like daily needs and grocery, food and beverage, and fashion and clothing requiring greater store sizes.
Domestic merchants maintained their 86 percent share of retail space take-up during the quarter. Additionally, eight new multinational brands opened their first retail location in the nation during this quarter.
