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Retail space leasing in key Indian cities witnessed a notable 69 percent year-on-year increase during the first half of the year, reaching approximately 5.7 million sq ft, as per JLL India. This growth was attributed to heightened demand from both domestic and international retailers. Simultaneously, new supply of retail space more than doubled to 2.3 million sq ft across seven prominent cities. The sector has already achieved 70 percent of last year's total leasing activity, and leasing volumes are projected to surpass 10 million sq ft for the full year.
Retail leasing activity across India's seven key metropolitan cities recorded a significant 69 percent increase in the first half of the calendar year, reaching around 5.7 million sq ft, according to a report by real estate consultancy JLL India. This growth has been primarily driven by improved demand from both Indian and overseas brands targeting well-located properties in malls and high street areas. Advertisement
The new supply of retail spaces in cities such as Delhi-NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and Pune more than doubled compared to the same period last year, touching 2.3 million sq ft, up from 0.9 million sq ft. JLL India remarked that leasing activity during the first half has already touched 70 percent of the total volume recorded for the entire previous year, which stood at 8.1 million sq ft.
Looking ahead, the consultancy projected that leasing volumes may exceed 10 million sq ft over the course of the calendar year. Additionally, 5.9 million sq ft of new retail space is anticipated to become operational in the latter half of the year.
Rahul Arora, Senior Managing Director (Karnataka, Kerala) and Head of Office Leasing & Retail Services at JLL India, stated that India's positioning in the global retail market has strengthened, with international brand entries more than doubling in the first half of the year. He attributed this trend to favourable factors such as a youthful population, increased disposable income, and rising preferences for premium consumption, which are particularly appealing against the backdrop of the current global economic climate.
Abhishek Trehan, Executive Director at Trehan Iris, observed that the country's retail leasing market continues to perform strongly. He linked this to positive consumer sentiment, the expansion of organised retail formats, and a growing preference for experiential shopping destinations. He noted that both local and international brands are in active pursuit of premium retail spaces in prime locations, reinforcing their trust in the Indian consumption story.
The market is drawing attention from global players, with brand entries rising significantly, and a growing number of premium spaces becoming operational. Analysts expect the sector to maintain this upward trajectory through the second half of the year, as demand for strategically located, experience-driven retail environments continues to grow. The combination of strong demographics and evolving consumer expectations is positioning India as a key hub for global retail expansion.
Source - PTI
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