Retail space leasing down 15% in Jan-Mar from previous quarter across 7 major cities: JLL

Gross leasing of retail spaces in malls and high streets fell 15 per cent in January-March to 3.1 million square feet across top seven cities as against the previous quarter on lower fresh supply, according to JLL.

On Tuesday, real estate consultant JLL India released the gross leasing data for retail spaces in shopping malls, high streets and prime retail developments.

During the fourth quarter of 2025 calendar year, the gross leasing stood at 3.6 million sq ft across seven major cities -- Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune.

However, when compared to the year-ago period, the gross leasing was flat in March quarter.

"The quarterly moderation in retail leasing is largely due to absence of sizeable new mall supply of institutional grade quality following strong mall infusion of 2.5 million sq ft in Q4 2025 (October-December 2025)," the consultant explained.

Only 0.25 million sq ft of new mall supply entered the market in March quarter.

"With 46.1 million sq ft of institutional-grade pipeline through 2030 and demand consistently outpacing supply, we are witnessing not just resilience, but the foundation for India's next retail real estate expansion cycle driven by rising consumption, D2C physical migration, and retailer format sophistication," said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.

Indian retailers had 79 per cent share of quarterly volume, driven by expansion from Direct-to-Consumer (D2C) brands.

"Fashion & apparel segment maintained its historical dominance of retailer categories in Q1 2026 (with 33 per cent share), though entertainment emerged as the quarter's breakout performer with a 16 per cent share, claiming the second position across all categories," JLL said.

Food & Beverage followed closely with a 15 per cent share, the consultant added.

Published on May 12, 2026