Daijiworld Media Network- Mumbai
Mumbai, May 9: In a remarkable surge, India's retail sector reported an impressive 169% year-on-year growth in the January-March quarter of 2025, driven by an ongoing boom in new retail store openings, particularly in major metropolitan cities. According to a report released by JLL India on Friday, the robust momentum in retail space leasing reflects the sector's resilience and expansion.
On a quarter-on-quarter (QoQ) basis, gross leasing activity in the retail sector increased by 9%, underscoring the continued strength of demand for retail spaces across the country's top seven cities. In total, 3.1 million square feet of retail space was leased during the quarter in shopping malls and high streets.
From a supply standpoint, Q1 2025 witnessed a substantial addition of 2 million square feet of new retail space, marking a significant uptick in available commercial real estate. The report further highlighted that Bengaluru and Hyderabad collectively accounted for 60% of the overall retail leasing activity, with suburban micro-markets in these cities attracting a surge in demand, particularly from retailer categories such as daily needs, groceries, food and beverages, and fashion and apparel.
Fashion and apparel remained the leading category in India's retail space leasing, accounting for 31% of the total leasing activity in Q1 2025. The growing appetite for contemporary and fast-fashion brands, driven by India's younger demographic, has prompted both existing and new brands to rapidly expand their brick-and-mortar presence.
Domestic retailers continued to dominate retail space take-up, securing an 86% share of the leasing activity during the quarter. Additionally, Q1 2025 saw the debut of eight new international brands in India, marking their first retail store openings in the country. Among these newcomers were fast-fashion brands, European coffee giants, and electric vehicle (EV) manufacturers. The increasing popularity of India's out-of-home coffee market is also driving the entry of new international brands catering to artisanal brewing and the premium coffee segment.
This robust performance reaffirms the continued growth potential of India's retail sector, underscoring the rising demand for physical retail spaces, and the expanding consumer appetite for diverse, high-quality offerings.