Mumbai Retail Market 2025: Leasing Surges 82 percent, Luxury Brands Expand

Mumbai’s prime retail sector reflected a standout performance in 2025, with leasing transactions rising nearly 82% year-on-year, according to JLL. Even though there was a 24% dip in activity during Q4, the full-year data indicate strong demand across malls and high streets, particularly from international brands in luxury, fashion, and beauty.

Net absorption for the year reached 0.9 million sq ft, mostly fueled by new mall completions earlier in 2025. The suburban markets led the fourth-quarter activity, marked by high-profile store launches, including Game Palacio, Louis Phillipe, and Jus Jumpin in key malls. With no new mall completions in Q4, total mall stock remained steady at 15.5 million sq ft by year-end.

This sustained leasing increase contributed to a tighter market, with vacancy rates falling 30 basis points quarter-on-quarter and 230 basis points year-on-year. Rents recorded moderate growth, rising 1.6% quarter-on-quarter and 11% year-on-year, led by the Prime North submarket. Investor interest in quality retail assets remained robust, contributing to a 20 basis point yield compression.

Looking ahead, JLL anticipates continued strong demand, supported by rising domestic purchasing power and international retailer expansion. Analysts predict further store openings and expansions across prime malls and suburban clusters, reinforcing Mumbai’s stature as a key destination for both local and global retail investment. With quality supply matching the appetite for premium retail space, 2026 is poised to sustain the city’s upward momentum in the sector.