Bengaluru retail leasing surges 52% in Q4 as rents rise, mall supply stalls

The leasing spike pushed the city’s retail sector into tighter supply conditions.

Retail leasing rose 52% quarter on quarter (QoQ) in Bengaluru, India during the fourth quarter of 2025, with the market described as “Rents Rising,” according to a JLL report.

Despite increased mall retail absorption in the quarter, the city did not add new mall supply, leaving total inventory at 14.5 million square feet (sq ft).

Vacancy in the retail market declined by 30 basis points to 8.7% due to leasing activity.

Mall rents increased 1.3% QoQ, whilst capital values inched up 0.9% QoQ. Average gross rent stood at about $2.02 (INR194) per sq ft per month.

Prominent malls including One Sobha Mall, Forum Rex Walk, and Mantri Square Mall recorded leasing activity.

Brands that took space included Massimo Dutti, Zudio, Funky Monkey, and Chicco.

High street retail demand came from food and beverage, jewellery and home furnishing tenants, including Suka, Indriya Jewels, Joyalukkas, Her Story, Nilkamal, and Toit.

The retail market is expected to see 0.7 million sq ft of new mall supply by the end of 2026 in the suburbs. Brigade Cornerstone Utopia Mall is scheduled for completion in the first quarter of 2026.

Between 2026 and 2028, 2.0 million to 2.5 million sq ft of additional retail space is expected, including Phoenix Market City Phase 2, Forum 13 Degree North, and Prestige Park Grove Mall.

Vacancy is expected to remain between 8.5% and 9.0% due to leasing demand from fashion, food and beverage, and entertainment retailers.

(US$1 = INR95.94)