-
Q1 2025 records retail leasing of 2.4 Million Square Feet (MSF); Hyderabad, Mumbai & Delhi NCR together drive 74% of total leasing activity.
-
Main Streets continue to dominate, witness 1.69 MSF of leasing volume in Q1.
Cushman & Wakefield, one of the largest and fastest growing real estate services firm in India today, released its Q1-2025 Retail Market Beat Report, highlighting the continued strength of India’s retail sector. According to the report, leasing activity crossed 2.4 Million Square Feet (MSF) in the first quarter of the year across the top 8 cities. This is a robust 55% year-on-year (yoy) growth and a 6% quarter-on-quarter (qoq) increase. Both Malls and Mainstreets contributed to this growth owing to the commencement of new supply in emerging locations.
The report highlighted that Hyderabad was the frontrunner in terms of leasing volume, contributing 34% (0.8 MSF) of the total leasing activity, with a staggering 106% yoy growth. Besides the prominent high streets such as HITEC City and Jubilee Hills, certain emerging high streets such as Kothapet, Secunderabad, Boduppal and Kompally also contributed immensely to leasing. Mumbai followed closely, accounting for 24% (0.58 MSF) of the total leasing volume and recorded a 259% yoy growth, largely owing to the emergence of new high street locations and the addition of new mall supply.
Delhi NCR also saw significant traction, capturing 17% (0.41 MSF) of the total leasing share, supported by strong demand in key submarkets and a 57% yoy increase. Retail activity here was largely led by premium brands, dining and entertainment concepts, reinforcing its status as a high consumption market.
Bengaluru and Chennai, meanwhile, exhibited stable yoy growth numbers with 0.19 MSF and 0.17 MSF of leasing respectively.
The report also observed that Main Streets continued their domination of the leasing landscape, accounting for 2/3rd of the total leasing volume at 1.69 MSF, with premium high street locations in Delhi NCR, Mumbai, Bengaluru and Hyderabad witnessing heightened interest from retailers. Mall leasing, meanwhile, stood at 0.72 MSF for the quarter. Notably, Mumbai witnessed the highest lease share of 44% in Malls at 0.31 MSF. This was triggered by two Grade A malls becoming operational in the city, adding 1.3 MSF to India’s Grade A mall inventory, now standing at ~63 MSF.
In terms of category demand, the report observed that Entertainment and Fashion were the biggest space consumers in malls, capturing a 34 % leasing share at 0.35 MSF, whereas Fashion and F&B were most prevalent in main streets across the top-8 cities with 0.80 MSF of leasing volume.
Additionally, foreign brands accounted for around 8% of the transaction volumes to partake in India’s growing consumption story, while domestic brands drove over 92% of leasing activity, highlighting the strength of the homegrown retail expansion.
Looking ahead, mall leasing activity is expected to further pick up with close to 6.4 MSF of new mall supply expected across the top 8 cities by the end of 2025, 58% of which will be Grade A+.
Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail, India said, "India’s retail sector is evolving at a dynamic pace, and the strong leasing activity in Q1 2025 reflects growing market confidence. We’re seeing a clear trend where retail demand is following new, quality supply—cities with fresh developments are witnessing heightened transaction volumes. Beyond traditional malls, new retail hubs are emerging within mixed-use developments, including office and residential complexes. With close to 7 million square feet of new supply expected over the next three quarters—largely comprising premium Grade A malls—we expect this positive momentum to continue well into the year."