India to add 6 mn sq ft of F&B retail space by 2028, says JLL report

India's retail pipeline is set to add 6 million sq ft of food and beverage space by 2028, with high streets driving leasing momentum and foreign brands fuelling expansion

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India’s retail property market is set for strong growth, with new malls and prime developments planned through 2030. Of the 30 million square feet of retail development in the pipeline, about 6 million square feet will be taken up by the food and beverage (F&B) sector by 2028, according to a recent JLL report.

 

Based on recent leasing activity, the anticipated supply will meet about 38–40 per cent of total F&B demand. However, with high streets accounting for more than 50 per cent of overall F&B leasing, their potential for expansion in the next three years will surpass that of malls and business parks.

 

“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 Samantak Das, chief economist and head of research and REIS, India, JLL.

 

“With 6 million square feet of dedicated F&B space expected across the top seven cities by 2028, we anticipate rapid absorption within three to five years, driven by domestic and international operators seeking quality retail locations. This trend signals that the sector’s appetite for prime real estate extends beyond traditional mall formats, positioning F&B as a cornerstone of India’s evolving retail ecosystem,” Das added.

 

Since 2023, the F&B market has established itself as the driver of retail real estate growth, recording 4 million square feet of leasing across seven major cities — Mumbai, Delhi-NCR, Chennai, Hyderabad, Kolkata, Bengaluru, and Pune.

 

Bengaluru has emerged as India’s F&B hub, accounting for over a third of total leasing, with Indiranagar standing out as a hotspot. Mumbai and Delhi-NCR follow as strong competitors, highlighting the sector’s resilience and sustained growth potential.

 

Foreign investment fuels F&B expansion

 

On the investment front, the sector is on a strong growth trajectory, drawing increased interest from global operators. Since 2023, more than 20 international brands have entered India, led mainly by US-based players. Delhi-NCR and Mumbai have emerged as preferred launchpads, while multi-cuisine formats dominate with 41 per cent of leasing activity, reflecting a globalised palate shaped by travel and cultural exposure.

 

High streets leading

 

High streets have become the top choice for F&B operators, capturing 54 per cent of gross leasing across major cities. Their appeal lies in flexibility and organic growth opportunities, advantages traditional malls often lack. Global dining trends are reinforcing this expansion model, with high streets emerging as the preferred format.

 

“India’s retail sector has demonstrated remarkable resilience, with over 22 million square feet of leasing activity despite global headwinds. Bengaluru has spearheaded the craft beverage revolution, with 40 per cent of new pubs and breweries, and Indiranagar becoming a focal point for F&B expansion,” said Rahul Arora, head of office leasing and retail services, senior managing director (Karnataka, Kerala), India, JLL.

 

Arora added that Mumbai, Delhi-NCR, and Bengaluru together drive two-thirds of leasing. Mumbai leads in mall-based drinking establishments, while southern cities and Kolkata thrive on high streets. Pune mirrors Delhi’s mall focus, reflecting regionally balanced retail expansion.

 

India’s retail real estate sector has expanded rapidly, adding 18.6 million square feet of mall space in five years to reach 88.7 million square feet of Grade A stock. Mumbai, Delhi-NCR, and Bengaluru account for 63 per cent of this. Despite global headwinds, leasing remains strong, with about 22 million square feet absorbed since 2023, driven by global entrants, retail REITs, and rising institutional investment.