New Delhi: India’s retail sector continues its strong leasing trajectory, registering 2.24 million square feet (MSF) of activity in Q2 2025, according to Cushman & Wakefield’s latest Retail Market Beat Report.
Despite a marginal 5.4% quarter-on-quarter and 6.3% year-on-year dip, the sector recorded a robust 17% year-on-year growth in leasing volumes in H1 2025, totaling 4.61 MSF.
High streets led leasing activity with a 55% share (1.23 MSF), even as malls posted a significant comeback with a 45% share (1.01 MSF) – the highest in the past five quarters – marking a 42% quarter-on-quarter growth.
Also Read: Retail Leasing: Apparel, Food Beverage Dominate 54 Per Cent Share Across Top 7 Cities
The surge in mall leasing reflects renewed interest in structured and experience-driven retail spaces, amid an ongoing scarcity of new supply.
No new mall developments were recorded during Q2, keeping supply stagnant and driving mall vacancies down by 77 basis points to 8.16%. Top-tier Grade-A+ malls saw even tighter vacancies at just 4.28%, strengthening landlord leverage in premium locations.
Cities like Hyderabad (0.76 MSF), Mumbai (0.52 MSF), and Delhi-NCR (0.3 MSF) accounted for over 70% of the total leasing activity, with Mumbai and Pune showing 1.6x and 1.5x year-on-year growth, respectively.
Retail market beat report reveals, that domestic retailers remained dominant with an 86% share in leasing volume, while international retailers increased their footprint to 14%, largely driven by their preference for mall-based environments.
Also Read: Cushman Wakefield Office MarketBeat Report: Pune Records 6.8 MSF Leasing in H1 2025
The retail market beat report highlights strong leasing across fashion, food & beverage (F&B), wellness (8%), and grocery/supermarkets, which posted a 3x quarter-on-quarter growth.
“With over 4 MSF of new Grade A mall supply expected in the second half of 2025, particularly in Mumbai, Delhi-NCR, and Hyderabad, we anticipate renewed retail expansion opportunities,” said Suvishesh Valsan, Head of Research India, Cushman & Wakefield. “Retail demand remains robust, driven by lifestyle-led consumption and growing interest from global brands.”
Retail Market Beat Report: City-level insights reveal
- Mumbai: Leasing surged to 0.52 MSF, a 1.6x year-on-year growth.
- Hyderabad: Continued as the top performer with 0.76 MSF of leasing and near-zero vacancies in superior malls.
- Delhi-NCR: Despite a leasing dip, 1.7 MSF of new Grade A retail space is expected later this year.
- Pune: Recorded 0.23 MSF of activity, with tight vacancies in premium malls.
- Bengaluru, Chennai, Ahmedabad, and Kolkata also showed varied leasing trends, shaped by local supply-demand dynamics.
As new supply enters the market in H2 2025, leasing momentum is expected to further strengthen, especially in Tier I cities where demand for premium, experiential retail continues to rise, says the retail market beat report.
