Synopsis
India's retail leasing activity surged by 55% in Q1 2025, surpassing 2.4 million square feet. Malls and mainstreets contributed significantly, with Hyderabad leading in leasing volume at 34%. Expect continued momentum with new Grade A mall supplies on the horizon.Key Takeaways
- Leasing activity in India’s retail sector grew by 55%.
- Hyderabad led with 34% of total leasing.
- Mumbai recorded a remarkable 259% year-on-year growth.
- Mainstreets made up two-thirds of total leasing volume.
- Domestic brands drove over 92% of leasing activity.
New Delhi, April 8 (NationPress) Leasing activities within India’s retail industry saw a substantial 55% increase, surpassing 2.4 million square feet (MSF) during the January-March timeframe this year across the country’s leading eight cities. This growth was driven by both malls and mainstreets, as highlighted by a report issued on Tuesday.
The report by Cushman & Wakefield noted that the increase in leasing was fueled by the introduction of new supply in emerging areas.
Hyderabad emerged as the leader in leasing volume, representing 34% (0.8 MSF) of the overall leasing activity, showcasing an impressive 106% year-on-year growth.
Following closely, Mumbai accounted for 24% (0.58 MSF) of total leasing, recording a remarkable 259% year-on-year increase, primarily due to the rise of new high street locations and additional mall supply, as reported.
Delhi-NCR also demonstrated significant growth, capturing 17% (0.41 MSF) of the total leasing share, bolstered by strong demand in key submarkets and a 57% year-on-year increase.
Bengaluru and Chennai displayed steady growth figures with 0.19 MSF and 0.17 MSF of leasing, respectively.
Saurabh Shatdal, Managing Director at Cushman & Wakefield, stated, "The evolution of India’s retail sector is progressing at a rapid pace, and the substantial leasing activity in Q1 2025 reflects rising market confidence."
He added, "With nearly 7 million square feet of new supply anticipated over the next three quarters—comprising predominantly premium Grade A malls—we foresee this positive trend continuing throughout the year."
The report further indicated that mainstreets maintained their dominance in the leasing market, accounting for two-thirds of the total leasing volume at 1.69 MSF, with premium high street locations in Delhi NCR, Mumbai, Bengaluru, and Hyderabad experiencing increased interest from retailers.
In terms of category demand, the report found that entertainment and fashion represented the largest space consumers in malls, securing a 34% leasing share at 0.35 MSF, while fashion and F&B were the most significant categories in main streets across the top eight cities with 0.80 MSF of leasing volume.
Additionally, foreign brands made up around 8% of the transaction volumes, participating in India’s growing consumption narrative, while domestic brands drove over 92% of leasing activities, underscoring the strength of homegrown retail expansion.
Looking ahead, mall leasing activity is projected to rise further, with approximately 6.4 MSF of new mall supply expected across the top eight cities by the end of 2025, with 58% of it being Grade A+ properties, according to the report.
