New Delhi— India’s retail leasing activity surged by 55% year-over-year, exceeding 2.4 million square feet (MSF) across the top eight cities during the January–March quarter, driven by strong performance from both malls and main streets, according to a report released Tuesday by Cushman & Wakefield.
The growth was fueled by new supply in emerging locations, with both traditional malls and bustling high streets contributing significantly to the upswing.
Hyderabad led all cities in leasing volume, accounting for 34% (0.8 MSF) of total activity—registering a remarkable 106% year-over-year growth. Mumbai followed with 24% (0.58 MSF) and an impressive 259% annual increase, boosted by the development of new high street hubs and additional mall inventory.
Delhi-NCR also recorded strong momentum, securing 17% (0.41 MSF) of total leasing volume, supported by robust demand in major submarkets and a 57% year-over-year rise.
Meanwhile, Bengaluru and Chennai demonstrated steady growth, with 0.19 MSF and 0.17 MSF of leasing activity, respectively.
“India’s retail sector is evolving rapidly, and the strong leasing activity in Q1 2025 reflects growing market confidence,” said Saurabh Shatdal, Managing Director at Cushman & Wakefield.
“With nearly 7 million square feet of new supply expected over the next three quarters—primarily premium Grade A malls—we anticipate continued positive momentum throughout the year,” he added.
The report noted that main streets remained dominant, accounting for two-thirds of the total leasing activity at 1.69 MSF. Premium high street locations in Delhi-NCR, Mumbai, Bengaluru, and Hyderabad attracted heightened interest from both domestic and international retailers.
In terms of category-wise demand, entertainment and fashion led leasing in malls, accounting for 34% (0.35 MSF) of the space absorbed. On main streets, fashion and food & beverage (F&B) were the top-performing segments, with 0.80 MSF of leasing across the top eight cities.
The report also highlighted the continued dominance of domestic retailers, who drove over 92% of the leasing activity. Foreign brands, while accounting for just 8%, remain actively engaged in India’s growing consumption story.
Looking ahead, mall leasing is expected to gain further momentum, with 6.4 MSF of new mall supply projected across the top eight cities by the end of 2025. Of this, 58% is expected to be Grade A+ developments, underscoring the shift toward more premium retail spaces. (Source: IANS)
