India’s retail sector grows by 169% Y-o-Y during January-March 2025
9 May, Mumbai 2025
In the January-March 2025 quarter, India’s retail sector grew by 169 per cent Y-o-Y as retailers in major metropolitan areas continued to open new retail stores, as per a report by JLL India.
Gross leasing activity within the retail sector increased by 9 per cent Q-o-Q, the report shows. Besides demand for retail space across top seven cities remaining robust, retailers also focused on launching new stores across the nation.
In Q1, FY25, retailers leased 3.1 million sq ft in shopping malls and on high streets across the top seven cities. Regarding supply, retailers added 2 million sq ft of new retail space during the quarter.
In terms of where the leasing volume occurred, Bengaluru and Hyderabad together accounted for 60 per cent of the total leasing activity in India. Prominent high streets in both these cities experienced active leasing in suburban submarkets, with larger store size requirements coming from retail categories such as fashion and apparel, the report stated.
The fashion and apparel segment represented a substantial 31 per cent share of the leasing activity in Q1 2025. Brands focusing on contemporary and fast fashion dominated the space uptake as both existing players and new entrants in the Indian retail scene rapidly expanded their brick-and-mortar footprint to serve the growing needs of the younger demographic, points out Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
During the quarter, domestic retailers accounted for an 86 per cent share of the total retail space in India. Eight new international brands also opened their maiden stores across the country during this quarter.
The quarter also saw eight new international brands open their first retail location in the country. These included fast-fashion brands, European coffee giants, and electric vehicle (EV) manufacturers, notes Rahul Arora, Head-Office Leasing and Retail Services, India, JLL.
