Mumbai emerges as retail hotspot as int’l brands vie for prime locations

Retail leasing surged about 82% YoY in 2025.

Mumbai’s rising consumer spending is expanding opportunities for domestic brands to scale whilst also drawing in international retailers that see strong demand in the city and are competing for prime retail locations, according to JLL’s Asia Pacific Retail Market Dynamics report.

Retail leasing in the fourth quarter (Q4) of 2025 fell 24% quarter-on-quarter (QoQ), but overall activity across malls and high streets remained strong.

On a yearly basis, leasing surged about 82% YoY compared with 2024.

International retailers showed increasing interest, particularly in luxury, fashion, and beauty categories.

Net absorption reached 0.9 million sq ft in 2025, supported by new mall completions earlier in the year

Suburban areas accounted for most leasing activity in the quarter. Notable new store openings included Game Palacio, Louis Philippe, and Jus Jumpin across major malls.

Two malls—Skycity Mall and Aurum Square Mall—opened in the suburbs in the first quarter of 2025, with no additional mall completions for the rest of the year.

Total mall stock stood at 15.5 million sq ft by Q4 2025. Strong demand in established premium malls pushed vacancy down around 30 basis points QoQ and 230 basis points YoY.

Rents rose 1.6% QoQ, contributing to an 11% annual increase for 2025, reflecting steady growth throughout the year.

Growth was strongest in the Prime North submarket, which outperformed other areas.

Investor interest in high-quality retail assets stayed firm, with yields compressing by about 20 basis points YoY.