Bengaluru to Delhi NCR: F&B Leads India’s Retail Growth with Million-sq-ft Deals

By: Sakshi Prakash

Date:

September 17, 2025

India’s Food & Beverage (F&B) sector is emerging as a major force behind retail real estate expansion, according to a recent JLL report. Since 2023, about 4 million sq ft of retail leasing has been driven by F&B operators across seven leading Indian cities: Bengaluru, Mumbai, Delhi NCR, Chennai, Hyderabad, Kolkata and Pune.

In this surge, Bengaluru takes the lead, capturing over one-third of the total leasing volume, with Indiranagar cited as a preferred neighbourhood. Mumbai and Delhi NCR follow closely, reinforcing their status as hotspots for both domestic and global F&B brands.

Another trend: high streets are dominating more than 50% of leasing transactions in the F&B segment, overtaking traditional malls in many respects. Developers are recognising this shift: upcoming destination malls are planning to allocate up to 25% of their space to F&B offerings, a reflection of demand.

Looking ahead, JLL forecasts an additional 6 million sq ft of F&B-dedicated retail space will come online in these same top cities by 2028. Given current trends, much of this will be quickly absorbed, as both international entrants and local operators seek well-located retail space.

This expansion underscores how F&B isn’t just a complementary retail segment, it’s becoming central to how retail real estate is conceived and developed in India. The shift toward high-street formats, the increasing share of F&B in malls and rising international participation are all part of a broader reconfiguration of India’s retail property dynamics.

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