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India’s F&B sector has emerged as the cornerstone of the country’s retail real estate growth, with 4 million sq. ft of leasing activity across seven (Mumbai, Delhi NCR, Chennai, Hyderabad, Kolkata, Hyderabad and Pune) major cities since 2023. This remarkable expansion underscores the sector’s important role in driving the country’s broader retail transformation, which has witnessed nearly 18.6 million sq. ft of new shopping mall space added over the past five years, according to the JLL report.
Bengaluru has established itself as the undisputed F&B leader, securing more than one-third share of total leasing volume, with Indiranagar remaining a preferred destination for operators. Mumbai and Delhi NCR follow as key markets, collectively contributing to a sector that demonstrates resilience and robust growth potential.
“The F&B sector is fundamentally reshaping India’s retail real estate landscape. We are witnessing a paradigm shift where developers are planning to dedicate up to 25% of space in upcoming destination malls to F&B – a clear response to the segment’s robust demand dynamics. With 6 million sq. ft of dedicated F&B space expected to become available across the top 7 cities by 2028, we anticipate rapid absorption within 3-5 years, driven by both domestic and international operators seeking quality retail locations. What is particularly compelling is that high streets continue to dominate F&B leasing activity, accounting for over 50% of transactions in the past 30 months. This trend signals that the sector’s appetite for prime real estate extends well beyond traditional mall formats, positioning F&B as a cornerstone of India’s evolving retail ecosystem,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
International investment fuels F&B expansion The sector’s growth trajectory has attracted significant attention from international operators, with over 20 new global F&B brands entering India since 2023. US-based brands led international expansion, while Delhi NCR and Mumbai remain hotspots for global brands establishing their maiden Indian presence. Multi-cuisine establishments dominated the landscape with a 41% share of leasing activity, reflecting India’s evolving palette influenced by travel and global influence.
High Streets lead F&B preference High streets have emerged as the preferred destination for F&B operators, accounting for 54% of total gross leasing across top cities. This preference stems from organic expansion opportunities provided by high streets compared to traditional shopping mall formats.
“India's retail sector has demonstrated remarkable resilience, with over 22 million sq. ft. of leasing activity despite global headwinds. The growth story is truly a tale of multiple cities, each carving their unique niche. Bengaluru has emerged as the undisputed leader—not just dominating F&B absorption with over one-third market share but also spearheading the craft beverage revolution with 40% of new pubs and breweries, with Indiranagar becoming a hotspot for F&B expansion. Mumbai and Delhi NCR, alongside Bengaluru, form the trinity driving two-thirds of national leasing activity, while Delhi NCR stands out with 26% of the drinking establishment growth and a unique preference for mall-based F&B formats over high streets. The southern markets—Chennai and Hyderabad—along with Kolkata are showcasing vibrant high street F&B activity, while Pune mirrors Delhi NCR's mall-centric approach. This diversified, regionally-balanced growth reinforces that India's retail expansion isn't just robust—it’s strategically distributed across our key metros,” said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
India retail sector’s broader growth story The retail real estate sector has witnessed unprecedented growth, with 18.6 million sq ft of new shopping mall space added across the top 7 cities over the past five years, bringing total operational Grade A stock to 88.7 million sq ft. Mumbai, Delhi NCR, and Bengaluru dominate the landscape, accounting for 63% of existing organized retail assets. Despite global uncertainties, retail leasing has remained robust with over 22 million sq. ft absorbed between 2023 and H1 2025. Shopping malls led the leasing activity with 52% share. During this period, more than 60 new global retailers—primarily from EMEA and America—opened their first Indian stores, choosing Delhi NCR and Mumbai as preferred entry points. In 2023, the retail sector reached a milestone with India’s first retail REIT—Nexus Select Trust—, significantly boosting institutional participation. Between 2018 and H1 2025, approximately USD 2.5 billion in institutional capital flowed into the sector across 22 deals, with 30 institutionally owned developments now spanning 20.6 million sq ft across the top seven cities.
