Bengaluru retail rents to rise by up to 3% this year

And capital values are expected to appreciate by up to 3%.

In a recent report, JLL said retail rents in Bengaluru are expected to rise by 1.5% to 2.0% in 2025, driven mainly by new mall space additions in the Suburbs submarket.

In addition, JLL said with renewed investor confidence and increasing leasing activity, Bengaluru’s overall retail capital values are projected to appreciate by 2.5% to 3.0% year-over-year by end-2025.

Here’s more from JLL:

The demand for retail space in Bengaluru’s premium High Streets remains strong. Superior-grade malls witnessed moderate traction due to low vacancy levels. Retailers are actively increasing store counts as consumption drives growth in the sector.

Among retailer segments, fashion and apparel accounted for the highest share of leasing (23%), followed by home and furnishings (18%) and jewellery (16%) in 2Q25. Key tenants include Westside, Pantaloons, Joyalukkas, Kalyan Jewellers, IKEA and Wakefit.

No new mall completions in Q2 2025

There were no new mall completions in the quarter, and mall inventory remained unchanged at 14.5 million sq ft. Brigade Cornerstone Utopia Mall is scheduled for completion in the Suburbs submarket by end-2025.

In 2026, the Suburbs submarket is likely to see the opening of SBR Lucky Mall and Ekaiva, as well as mall-area expansion at Phoenix Marketvity, boosting retail supply.

Outlook: Retail market activity to gain momentum

Bengaluru’s retail sector is set for continued growth, with increasing leasing opportunities and further expansion by both international and domestic brands.

Future growth prospects are especially strong in the High Street markets of Bellary Road, Yelahanka and Sarjapur Road, supported by metro route extensions and other ongoing infrastructure development.