India’s retail property market is poised for significant expansion, with nearly 6 million square feet of new food and beverage (F&B) retail space expected to be added by 2028 across the country’s top seven cities, according to a new report by JLL.
The report highlights a strategic shift in mall development, with developers planning to allocate up to 25% of space in upcoming destination malls specifically for F&B outlets. This move reflects the segment’s robust demand and its growing role as a cornerstone of India’s evolving retail ecosystem.
JLL anticipates rapid absorption of the new F&B space within three to five years, driven by both domestic and international operators. Since 2023, the F&B sector has already recorded 4 million square feet of leasing activity across major cities including Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, and Pune.
Key Trends and Insights:
- High Streets Lead Leasing Activity: Despite a strong pipeline of mall projects, high streets currently account for more than half of F&B leasing. Over the next three years, street retail is expected to outpace malls, with business parks also showing rising demand for amenity-driven dining options.
- Bengaluru Emerges as F&B Hub: Bengaluru leads the F&B leasing market, contributing over one-third of total activity. Indiranagar has become a standout hotspot, particularly for craft beverage outlets, with the city accounting for 40% of new pubs and breweries.
- Foreign Investment Surge: More than 20 international F&B brands have entered India since 2023, primarily from the United States. Delhi NCR and Mumbai have served as preferred launchpads, with multi-cuisine formats dominating 41% of leasing activity, reflecting a more globalised consumer palate.
- Resilient Retail Sector: India’s retail real estate market has added 18.6 million square feet of mall space over the past five years, reaching 88.7 million square feet of Grade A stock. Mumbai, Delhi NCR, and Bengaluru collectively hold a 63% share of this inventory.
Rahul Arora, Senior Managing Director at JLL India, noted that the sector has demonstrated “remarkable resilience,” with over 22 million square feet of leasing activity since 2023 despite global headwinds. He emphasised the growing role of F&B in shaping consumer experiences and driving footfall across both malls and high streets.
