Mumbai’s retail market is riding a wave of confidence, with rents climbing steadily and mall supply reaching new highs. JLL’s latest report shows that average rents in Mumbai rose 1.6% quarter-on-quarter and 10.8% year-on-year, the highest growth among all major cities. This surge is driven by consistent rent appreciation in superior grade malls, which continue to operate at near full occupancy levels.
In 2025, Mumbai accounted for 22% of new mall supply nationwide, securing a 17% share of retail leasing activity. With nearly 46.5 million sq. ft. of new retail space expected across India by 2030, Mumbai is positioned as a key contributor to the pipeline, adding around 13% of upcoming supply. Despite overall mall vacancy rising to 12.3%, premium malls in Mumbai remain resilient, sustaining strong footfalls and brand demand.
Rental Growth Momentum
Mumbai’s retail rentals rose 1.6% in Q4 2025 compared to the previous quarter, while year-on-year growth stood at 10.8%, the highest among all major cities. This performance reflects the strength of superior grade malls, where consistent rent appreciation and near full occupancy levels have sustained investor and occupier confidence. Developers in Mumbai are setting new benchmarks, with premium properties commanding higher rents as demand for quality retail space continues to outpace supply.
Supply and Leasing Trends
India’s retail sector saw 6.3 million sq. ft. of new mall supply in 2025, the highest in three years. Mumbai contributed 22% of this new supply, reinforcing its role as a leading retail hub. The city secured a 17% market share in leasing activity, while other metros like Delhi NCR and Hyderabad dominated with larger shares. Limited new supply in cities such as Bengaluru, Pune, and Chennai constrained leasing activity there, but Mumbai’s steady pipeline ensured healthy absorption.
Vacancy and Occupancy Dynamics
Overall mall vacancy across India rose to 12.3% in Q4 2025, up 80 basis points quarter-on-quarter. However, in Mumbai, superior malls continued to operate at 95–100% occupancy, sustaining strong footfalls and brand engagement. This resilience highlights the bifurcation in the market: while weaker assets face rising vacancy, premium malls remain in high demand, attracting both established retailers and new entrants.
Development Pipeline
Looking ahead, nearly 46.5 million sq. ft. of new retail space is expected across India by 2030, with Mumbai contributing around 13% of the pipeline. This expansion will lift total organised retail stock to ~138 million sq. ft. Nationally, Delhi NCR and Hyderabad lead the pipeline, but Mumbai’s steady share ensures its continued relevance as a retail powerhouse. With rents rising, property prices appreciating, and premium malls sustaining occupancy, Mumbai’s retail market is set to remain a magnet for investors, brands, and consumers alike.
