Blitz Bureau
NEW DELHI: Food and beverage industry’s share in overall retail leasing grew from 16 per cent in 2023 to 22 per cent in 2025 across the top seven cities in India, a report said on September 15. The sector has emerged as the cornerstone of the country’s retail real estate growth, with 4 million square feet of leasing activity across seven major cities (Mumbai, Delhi, NCR, Chennai, Hyderabad, Kolkata and Pune) 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, JLL stated in a report. Bengaluru has established itself as the undisputed F&B leader, securing more than one-third share of total leasing volume, with Indiranagar locality 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 per cent of space in upcoming destination malls to F&B – a clear response to the segment’s robust demand dynamics,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. With 6 million square feet of dedicated F& B space expected to become available across the top seven cities by 2028, we anticipate rapid absorption within 3-5 years, driven by both domestic and international operators seeking quality retail locations, Das added. What is particularly compelling is that high streets continue to dominate F&B leasing activity, accounting for over 50 per cent of transactions in the past 30 months, he further said.
