What Are the Latest Trends in India's Retail Sector with 2.24 Million Square Feet Leasing Volume?
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Synopsis
Discover the latest insights from India's retail sector as it records an impressive 2.24 million square feet of leasing activity across major cities. With robust growth in demand and shifting preferences towards premium spaces, this report highlights key trends shaping the retail landscape.
Key Takeaways
- 2.24 million square feet of leasing recorded across major cities.
- Delhi-NCR, Hyderabad, and Mumbai are leading markets.
- Strong growth in Food & Beverage and Fashion sectors.
- High streets remain a dominant driver of activity.
- Leasing volume in Grade-A malls has tightened further.
New Delhi, July 24 (NationPress) During the April-June timeframe, approximately 2.24 million square feet (MSF) of leasing was recorded across malls and high streets in India's top eight cities, such as Delhi-NCR, Hyderabad, Mumbai, Chennai, and Bengaluru, according to a report released on Thursday.
This figure aligns with the average quarterly leasing volume observed over the past four quarters, although it indicates a slight decline of 5.4 percent quarter-on-quarter (q-o-q) and a 6.3 percent decrease year-on-year (YoY), as per the 'Q2-2025 Retail Market Beat' report by Cushman & Wakefield.
The report highlights that Hyderabad, Mumbai, and Delhi-NCR were the leading markets, achieving leasing volumes of 0.76 MSF, 0.52 MSF, and 0.3 MSF, respectively, collectively contributing to over 70 percent of the total leasing activity for the quarter.
Following them were Pune (0.23 MSF), Bengaluru (0.18 MSF), Chennai (0.16 MSF), Kolkata (0.05 MSF), and Ahmedabad (0.04 MSF). In terms of growth, Mumbai and Pune experienced increases of 1.6 times and 1.5 times respectively on a YoY basis during this quarter.
“The retail landscape in India demonstrates robust momentum, with steady growth in leasing volumes reflecting a solid demand,” stated Suvishesh Valsan, Head of Research India at Cushman & Wakefield.
High streets have emerged as the primary driver of activity, while vacancy rates in Grade-A malls have further tightened, indicating a clear preference for high-quality and experience-oriented retail spaces, Valsan further noted.
The first half of 2025 recorded leasing volumes of 4.61 MSF, representing a 17 percent YoY growth, which underscores strong retailer sentiment amid stable consumer demand, as mentioned in the report.
Malls comprised 45 percent of the leasing volume in Q2 (1.01 MSF), showcasing a 42 percent increase from the previous quarter.
This trend emphasizes the rising demand for premium retail assets and reinforces landlord leverage in prime locations. In terms of category demand, Food & Beverage and Fashion led the leasing activity, accounting for over 50 percent of total leasing in both mall and high street formats during the second quarter of the year.
Point of View
It is clear that the retail sector in India is on a promising trajectory, reflecting a resilient consumer market and a shift towards premium retail experiences. The ongoing demand signals a robust recovery, emphasizing the importance of high-quality retail spaces in meeting evolving consumer preferences.
NationPress
26/07/2025
Frequently Asked Questions
What cities are included in the leasing report?
The leasing report covers India's top eight cities: Delhi-NCR, Hyderabad, Mumbai, Chennai, Bengaluru, Pune, Kolkata, and Ahmedabad.
How much leasing volume was recorded in the April-June period?
Approximately 2.24 million square feet (MSF) of leasing volume was recorded during the April-June period.
What sectors are leading in leasing activity?
The Food & Beverage and Fashion sectors are leading in leasing activity, accounting for more than 50 percent of total leasing.
What does the decline in leasing volume indicate?
The decline indicates a slight reduction in market activity; however, the overall demand remains strong in the sector.
What is the outlook for the retail sector in India?
The outlook remains positive, with strong growth in leasing volumes and a clear preference for high-quality retail spaces.
