Mumbai, the financial capital of India, is witnessing a remarkable transformation in its retail real estate landscape. According to the latest report by JLL, India's retail real estate market experienced a staggering 65% year-on-year growth in Q3 2025, driven primarily by the robust performance of Delhi NCR and Hyderabad. Gross leasing across the top seven cities surged to 3.2 million square feet, reflecting a significant rebound in consumer demand and investment confidence within the sector.
The July-September quarter proved to be pivotal for the retail sector as developers introduced new, investment-grade spaces in markets that were previously constrained by supply. With Delhi NCR and Hyderabad together accounting for 57% of the national leasing activity, the report emphasizes the influence of newly completed malls and vibrant high streets on the expansion strategies of retailers. This growth trajectory not only indicates recovery but also paints a promising picture for the future of retail in India.
A key driver of this growth has been the dominance of domestic retailers, who represented an impressive 81% of gross leasing activity during this period. JLL reports that Indian brands alone leased 2.6 million square feet in Q3 2025, marking a 76% increase compared to the same quarter last year. This surge highlights the expanding footprint of Indian apparel, grocery, and food service companies as they continue to establish themselves in both malls and high-street locations. Notably, fashion and apparel leasing constituted 35% of the overall activity, showcasing the sector's resilience and consumer interest.
Moreover, the rise of direct-to-consumer (D2C) brands has marked a significant shift in retail strategies, as these companies increasingly adopt click-and-mortar approaches to enhance their market presence. The integration of online and offline channels is enabling these brands to cater to evolving consumer preferences, ensuring they remain competitive in a fast-paced retail environment. As per the report, the food and beverage sector also showed strong leasing interest, accounting for 16%, while daily needs and grocery sectors saw a notable share of 11%, reflecting changing consumer habits and demands.
In conclusion, the outlook for India's retail real estate sector appears exceptionally bright, fueled by the resilience of domestic retailers and the strategic expansion of various market segments. The continuing growth in leasing activity not only underscores the strength of the retail market but also sets a robust foundation for future developments across major Indian cities. Stakeholders in the retail space are well-positioned to capitalize on these emerging opportunities as the market evolves and matures.