Mumbai, May 10: The Indian retail sector witnessed 169 per cent growth (year-on-year) in the January-March quarter, as strong momentum in new retail store openings continued to play out in major metropolitan cities, a report said on Friday.On a quarter-on-quarter (QoQ) basis, gross leasing activity in the retail sector noted an uptrend of 9 per cent, according to the report by JLL India.
While demand for retail spaces continued unabated across the top seven cities, the infusion of new retail spaces also totalled to a new high.
During Q1 2025, 3.1 million square feet was leased by retailers in shopping malls and high streets across top seven cities. On the supply front, Q1 2025 witnessed new retail space additions of 2 million sq ft.
In terms of geographic spread of leasing volume, Bengaluru and Hyderabad together accounted for 60 per cent of the overall India leasing activity. Prominent high streets across both these cities witnessed vibrant leasing in suburban micro-markets with larger store size requirements coming from retailer categories such as daily needs and grocery, food and beverages and fashion and apparel, said the report.
Among retailer categories, fashion and apparel continued to remain the frontrunner in India’s retail landscape.
“The segment accounted for a significant 31 per cent share of the leasing activity in Q1 2025. Brands catering to contemporary and fast fashion dominated the space take-up as both existing and new entrants in the Indian retail scene fast expanded brick and mortar footprint to serve the growing needs of younger demographic,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
During the quarter, domestic retailers continued to lead retail space take-up with an 86 per cent share.
The quarter also saw 8 new brands of international origin open their first retail store in the country.
“These retailers included fast-fashion brands, European coffee giants, and electric vehicle (EV) manufacturers. The growing out-of-home coffee market in India continues to attract new international brands catering to artisanal brewing and premium coffee segment,” said Rahul Arora, Head-Office Leasing and Retail Services, India, JLL.