Retail leasing across India’s top eight cities reached 2.4 million square feet in the first quarter of 2025, marking a 55% year-over-year increase and a 6% rise from the previous quarter, according to Cushman & Wakefield’s Q1 2025 Retail MarketBeat report released Monday, as reported by Hindustan Times.
Hyderabad led all cities with 0.8 million square feet of leasing activity, contributing 34% to the national total. The city recorded a 106% annual increase, supported by both established high streets such as HITEC City and Jubilee Hills, and emerging areas including Kothapet, Secunderabad, Boduppal and Kompally.
Mumbai followed with 0.58 million square feet, or 24% of the total, representing a 259% year-on-year growth. The surge was attributed to newly operational high street locations and the addition of new Grade A mall space.
Delhi NCR ranked third, accounting for 0.41 million square feet or 17% of total activity, up 57% from the same period last year. Premium retail brands, food and beverage concepts, and entertainment outlets led the leasing trend in the region, reaffirming its status as a high-consumption zone.
Bengaluru and Chennai maintained stable year-over-year performance with 0.19 million square feet and 0.17 million square feet of leasing, respectively.
Main streets continued to dominate the leasing landscape, comprising roughly two-thirds of the total activity at 1.69 million square feet. High street locations in Delhi NCR, Mumbai, Bengaluru and Hyderabad attracted substantial retailer interest.
Mall leasing stood at 0.72 million square feet in Q1. Mumbai alone contributed 0.31 million square feet to that figure, or 44% of total mall leasing, driven by the addition of two new Grade A malls. The developments added 1.3 million square feet to India’s Grade A mall stock, bringing the nationwide total to approximately 63 million square feet.
Entertainment and fashion retailers led leasing within malls, occupying 0.35 million square feet or 34% of the mall leasing share. On high streets, fashion and F&B (food and beverage) brands were the most active, accounting for a combined 0.80 million square feet across the eight cities.
Domestic brands drove the bulk of the leasing activity, making up over 92% of transactions, while foreign retailers accounted for around 8%, indicating growing international interest in India’s expanding consumer market.
The report also highlighted strong leasing traction in new and upcoming supply zones, especially within mixed-use developments combining residential, retail and office spaces.
Cushman & Wakefield projects an optimistic outlook for the remainder of the year, with nearly 6.4 million square feet of new mall supply anticipated across the top eight cities by the end of 2025. Of this, 58% is expected to be in the premium Grade A+ category.
“India’s retail sector is evolving at a dynamic pace, and the strong leasing activity in Q1 2025 reflects growing market confidence,” said Saurabh Shatdal, managing director of capital markets and head of retail for Cushman & Wakefield India. “We’re seeing a clear trend where retail demand is following new, quality supply—cities with fresh developments are witnessing heightened transaction volumes.”
He added that nearly 7 million square feet of retail space is expected to come online over the next three quarters, with a large portion consisting of Grade A malls within integrated developments, further fueling leasing momentum throughout the year.