Retail Leasing Surges 55% YoY to 2.4 Million Sq Ft in Q1 2025
09 Apr 2025
3 Min Read
CW Team
India鈥檚 retail sector posted a robust performance in the first quarter of 2025, with total leasing activity reaching 2.4 million square feet (msf) across the top eight cities鈥攁 55% year-on-year (YoY) surge and 6% growth quarter-on-quarter (QoQ), according to Cushman & Wakefield鈥檚 latest Retail Market Beat report.
The leasing boom was led by Hyderabad, Mumbai, and Delhi NCR, which collectively accounted for 74% of the total volume. Hyderabad alone contributed 0.8 msf (34% of the total), recording a 106% YoY increase, largely driven by strong uptake in both established and emerging high street locations such as HITEC City, Jubilee Hills, Kothapet, and Kompally.
Mumbai followed with 0.58 msf (24%), marking a staggering 259% YoY growth, supported by the launch of two Grade A malls鈥擮beroi Sky City in Borivali and Aurum Square in Ghansoli鈥攁dding 1.3 msf to the city鈥檚 retail inventory. Delhi NCR contributed 0.41 msf (17%), driven by high demand for premium retail, dining, and entertainment spaces, especially in Gurugram and Noida.
Main streets remained the dominant retail leasing format, comprising 1.69 msf or two-thirds of the total leasing volume. Delhi NCR, Mumbai, Bengaluru, and Hyderabad were hotspots for high-street demand. Mall leasing stood at 0.72 msf, with Mumbai alone accounting for 44% of mall leasing. India鈥檚 Grade A mall inventory now totals nearly 63 msf.
In terms of retail categories, Fashion and F&B continued to dominate leasing demand. In malls, Entertainment and Fashion together held a 34% share (0.35 msf), while in high streets, Fashion and F&B led with 0.80 msf leased. Domestic brands drove over 92% of transaction volumes, while foreign retailers accounted for around 8%, reflecting growing confidence in India鈥檚 consumption story.
City-wise, Bengaluru and Chennai showed stable YoY growth with 0.19 msf and 0.17 msf leased, respectively. Pune also showed a sharp rise, with a 60% increase QoQ to 0.17 msf. Meanwhile, leasing in Ahmedabad and Kolkata remained muted.
High street rentals continued to appreciate, with markets such as Jubilee Hills (Hyderabad), Colaba Causeway (Mumbai), Galleria Market (Gurugram), and Usman Road (Chennai) seeing increases ranging from 2% to 20% YoY. Mall rentals remained stable with modest quarterly gains in top-performing assets.
Looking ahead, Cushman & Wakefield forecasts nearly 6.4 msf of new mall supply by the end of 2025 across the top cities, 58% of which will be premium Grade A+ assets.
鈥淭he strong leasing activity in Q1 reflects growing market confidence,鈥� said Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail, India, Cushman & Wakefield. 鈥淲ith close to 7 million square feet of new supply expected over the next three quarters鈥攍argely comprising premium Grade A malls鈥攚e expect this positive momentum to continue well into the year.鈥�
India鈥檚 retail sector posted a robust performance in the first quarter of 2025, with total leasing activity reaching 2.4 million square feet (msf) across the top eight cities鈥攁 55% year-on-year (YoY) surge and 6% growth quarter-on-quarter (QoQ), according to Cushman & Wakefield鈥檚 latest Retail Market Beat report.
The leasing boom was led by Hyderabad, Mumbai, and Delhi NCR, which collectively accounted for 74% of the total volume. Hyderabad alone contributed 0.8 msf (34% of the total), recording a 106% YoY increase, largely driven by strong uptake in both established and emerging high street locations such as HITEC City, Jubilee Hills, Kothapet, and Kompally.
Mumbai followed with 0.58 msf (24%), marking a staggering 259% YoY growth, supported by the launch of two Grade A malls鈥擮beroi Sky City in Borivali and Aurum Square in Ghansoli鈥攁dding 1.3 msf to the city鈥檚 retail inventory. Delhi NCR contributed 0.41 msf (17%), driven by high demand for premium retail, dining, and entertainment spaces, especially in Gurugram and Noida.
Main streets remained the dominant retail leasing format, comprising 1.69 msf or two-thirds of the total leasing volume. Delhi NCR, Mumbai, Bengaluru, and Hyderabad were hotspots for high-street demand. Mall leasing stood at 0.72 msf, with Mumbai alone accounting for 44% of mall leasing. India鈥檚 Grade A mall inventory now totals nearly 63 msf.
In terms of retail categories, Fashion and F&B continued to dominate leasing demand. In malls, Entertainment and Fashion together held a 34% share (0.35 msf), while in high streets, Fashion and F&B led with 0.80 msf leased. Domestic brands drove over 92% of transaction volumes, while foreign retailers accounted for around 8%, reflecting growing confidence in India鈥檚 consumption story.
City-wise, Bengaluru and Chennai showed stable YoY growth with 0.19 msf and 0.17 msf leased, respectively. Pune also showed a sharp rise, with a 60% increase QoQ to 0.17 msf. Meanwhile, leasing in Ahmedabad and Kolkata remained muted.
High street rentals continued to appreciate, with markets such as Jubilee Hills (Hyderabad), Colaba Causeway (Mumbai), Galleria Market (Gurugram), and Usman Road (Chennai) seeing increases ranging from 2% to 20% YoY. Mall rentals remained stable with modest quarterly gains in top-performing assets.
Looking ahead, Cushman & Wakefield forecasts nearly 6.4 msf of new mall supply by the end of 2025 across the top cities, 58% of which will be premium Grade A+ assets.
鈥淭he strong leasing activity in Q1 reflects growing market confidence,鈥� said Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail, India, Cushman & Wakefield. 鈥淲ith close to 7 million square feet of new supply expected over the next three quarters鈥攍argely comprising premium Grade A malls鈥攚e expect this positive momentum to continue well into the year.鈥�
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