Kolkata, 9th April 2025 – Cushman & Wakefield, one of the largest and fastest growing real estate services firm in India today, released its Q1-2025 Retail Market Beat Report, highlighting the continued strength of India’s retail sector. According to the report, leasing activity crossed 2.4 Million Square Feet (MSF) in the first quarter of the year across the top 8 cities. This is a robust 55% year-on-year (yoy) growth and a 6% quarter-on-quarter (qoq) increase. Both Malls and Mainstreets contributed to this growth owing to the commencement of new supply in emerging locations.

The report highlighted that Hyderabad was the frontrunner in terms of leasing volume, contributing 34% (0.8 MSF) of the total leasing activity, with a staggering 106% yoy growth. Besides the prominent high streets such as HITEC City and Jubilee Hills, certain emerging high streets such as Kothapet, Secunderabad, Boduppal and Kompally also contributed immensely to leasing. Mumbai followed closely, accounting for 24% (0.58 MSF) of the total leasing volume and recorded a 259% yoy growth, largely owing to the emergence of new high street locations and the addition of new mall supply.

Delhi NCR also saw significant traction, capturing 17% (0.41 MSF) of the total leasing share, supported by strong demand in key submarkets and a 57% yoy increase. Retail activity here was largely led by premium brands, dining and entertainment concepts, reinforcing its status as a high consumption market.

Bengaluru and Chennai, meanwhile, exhibited stable yoy growth numbers with 0.19 MSF and 0.17 MSF of leasing respectively.

Retail Leasing across top cities (in MSF)

City	Q1 2025	Q1 2024	Y-O-Y	City Share in Q1 2025
Ahmedabad	48,875	76,522	-36%	2%
Bengaluru	1,90,268	1,86,400	2%	8%
Chennai	1,70,773	2,03,892	-16%	7%
Delhi NCR	4,08,065	2,60,117	57%	17%
Hyderabad	8,07,097	3,91,500	106%	34%
Kolkata	37,500	39,200	-4%	2%
Mumbai	5,77,442	1,60,997	259%	24%
Pune	1,68,335	2,37,787	-29%	7%
Pan India	24,08,355	15,56,415	55%	100%

The report also observed that Mainstreets continued their domination of the leasing landscape, accounting for 2/3rd of the total leasing volume at 1.69 MSF, with premium high street locations in Delhi NCR, Mumbai, Bengaluru and Hyderabad witnessing heightened interest from retailers. Mall leasing, meanwhile, stood at 0.72 MSF for the quarter. Notably, Mumbai witnessed the highest lease share of 44% in Malls at 0.31 MSF. This was triggered by two Grade A malls becoming operational in the city, adding 1.3 MSF to India’s Grade A mall inventory, now standing at ~63 MSF.

In terms of category demand, the report observed that Entertainment and Fashion were the biggest space consumers in malls, capturing a 34 % leasing share at 0.35 MSF, whereas Fashion and F&B were most prevalent in main streets across the top-8 cities with 0.80 MSF of leasing volume.

Additionally, foreign brands accounted for around 8% of the transaction volumes to partake in India’s growing consumption story, while domestic brands drove over 92% of leasing activity, highlighting the strength of the homegrown retail expansion.

Looking ahead, mall leasing activity is expected to further pick up with close to 6.4 MSF of new mall supply expected across the top 8 cities by the end of 2025, 58% of which will be Grade A+.

Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail, India said, “India’s retail sector is evolving at a dynamic pace, and the strong leasing activity in Q1 2025 reflects growing market confidence. We’re seeing a clear trend where retail demand is following new, quality supply—cities with fresh developments are witnessing heightened transaction volumes. Beyond traditional malls, new retail hubs are emerging within mixed-use developments, including office and residential complexes. With close to 7 million square feet of new supply expected over the next three quarters—largely comprising premium Grade A malls—we expect this positive momentum to continue well into the year.”

Sharing key insights from the top 8 cities below:

• Hyderabad’s retail leasing momentum remained strong in Q1 2025, witnessing a 2% QoQ increase and nearly doubling YoY. High streets continued to dominate, accounting for over 90% of leasing activity. Suburban locations led the market with a 61% share in leasing, led by key areas such as Kothapet, Nallagandla, and Kompally, while core locations like Jubilee Hills contributed 24% to the leasing volume. Homegrown retail brands accounted for 98% of leasing volume, underscoring their aggressive expansion in the city. Among retail categories, fashion accounted for a 27% share, followed by wellness (19%) and F&B (16%), underscoring the rising demand for lifestyle, health-conscious brands, and experiential dining options. No new Grade A retail mall supply was recorded in Hyderabad in the first quarter; however, the city is set to record retail supply of 2.8 MSF by 2027, with 1.7 MSF slated this year. Areas such as Kompally and Shamshabad will see fresh retail developments, catering to rising demand in these underserved locations. High Street rentals increased by up to 2% yoy on average, driven primarily by Jubilee Hills. Meanwhile, mall rentals remained steady.
• Mumbai’s retail real estate market saw witnessed leasing volumes rising 41% QoQ to 0.58 MSF. The surge was led by malls, which contributed 55% of total leasing (0.32 msf), aided by fresh occupancies in newly operational properties like Oberoi Sky City in Borivali and Aurum Square in Ghansoli. Superior grade malls remained the preferred choice, accounting for 90% of mall leasing, at 0.29 MSF. Main street leasing also rose 30% QoQ to 0.26 msf, with Andheri and Mulund witnessing heightened traction. In terms of segments, fashion brands led the charge in total leasing volumes, capturing a 39% share, followed by CDIT and F&B at 15% each. The influx of 1.3 msf in new supply pushed overall mall vacancy up to 8.03%, though this is expected to stabilize as new tenants become operational. Rentals reflected market confidence, with top main streets like Colaba Causeway and Kemps Corner seeing more than 10% YoY growth, while mall rentals rose 2–3% QoQ.
• Bengaluru’s retail leasing remained stable at 0.19 msf in Q1 2025, marking a marginal 2% YoY increase. Main streets accounted for 75% of leasing at 0.14 msf, while mall leasing stood at around 0.05 msf. Fashion segment dominated retail leasing during the quarter, contributing over 40% of the total lease volumes, followed by F&B segment with a 21% share. With no new mall supply in the first quarter and the Grade A mall inventory unchanged at 11 msf during the quarter, headline vacancy in Grade A malls fell by 60 bps at 6.8% during the quarter. Average vacancy rate in superior malls (Grade A+) remained tight at around 3%, highlighting the robust demand but inadequate supply of premium mall space. Quoted mall rentals remained unchanged on a qoq basis. Rental appreciation of 1-2% was recorded on a qoq basis across main streets such as Indiranagar 100 Feet Road, Koaramangala 80 Feet Road, HSR Layout 27th Main and Jayanagar 4th Block, 11th Main on the back of sustained space demand.
• Chennai’s retail sector recorded 0.17 million sq. ft. of leasing volume in Q1 2025, with main streets dominating at 0.16 million sq. ft., driving over 90% of the total activity. Northwest (38%) and Off-CBD (37%) submarkets led demand, with hotspots like Anna Nagar, T. Nagar, Perambur, Arcot Road, and Aminjikarai attracting retailers. The fashion segment accounted for 37% of Main Street leasing, nearly a 4x increase YoY, while accessories & lifestyle followed at 32%, showing a notable rise from last quarter. Mall leasing remained limited at just 0.01 million sq. ft., constrained by tight availability of Grade A space. Mall vacancy declined 14 bps QoQ to 14.13% in Q1. Rentals in key main streets like Usman Road North, Usman Road South, Adyar Main Road, Purasawalkam High Road, and Pondy Bazaar rose 3-4% QoQ, fueled by sustained demand from national brands, a trend expected to continue.
• Retail leasing in Delhi NCR reached 0.41 msf in Q1 2025, growing 1.5x q-o-q and 2.2x y-o-y, driven by main streets, which accounted for 61% of leasing. Gurugram had a 52% share in quarterly leasing, followed by Noida (40%) and Delhi NCT (8%). While main street leasing tripled y-o-y, mall leasing declined by 12% y-o-y. The Fashion and F&B segments led space take-up with 24% share each, followed by Entertainment (18%) and Department Stores (11%), with F&B leasing nearly doubling y-o-y. With no new mall completions in Q1, mall vacancy dropped by 38 bps in the quarter and 3.5 percentage points y-o-y to 12.1%, with superior malls maintaining tight vacancy (~3%) while non-superior malls saw ~20% vacancy. Main street rentals surged across key locations, with Galleria Market (Gurugram) witnessing a 20% growth y-o-y, Connaught Place (14%), Khan Market (7%), and Sector 29, Gurugram (12-15%), while South Extension and Rajouri Garden remained stable.
• Retail leasing activity in Pune rose sharply in Q1 2025 to 0.17 msf, recording a nearly 60% increase over the previous quarter. Malls led the momentum, contributing 66% of the overall leasing (~0.11 msf)—a near 2X growth Q-o-Q. Nearly 50% of the mall leasing activity was concentrated in suburban precincts such as Solapur Road, Hadapsar, and Nagar Road. Fashion segment dominated leasing in the first quarter with a 25% share, followed by entertainment at 17% and departmental stores at 15%. Meanwhile, Main Street leasing hit 57,630 sq ft —up 17% Q-o-Q and 22% Y-o-Y- with peripheral locations capturing a 63% share with all the leasing activity occurring in precincts such as Akurdi and Pimpri-Chinchwad. The entertainment category dominated with a 56% share, followed by the wellness category with 9% and the footwear category with 4%. Mall vacancy held steady at 7.1%, with no new supply added during the quarter. Superior Grade malls maintained tight vacancies in the 5–6% range, reflecting sustained demand for quality space. Main street rentals jumped 6–7% Q-o-Q, with prominent appreciation in FC Road, Aundh, Bund Garden, and Baner-Balewadi. Meanwhile, mall rentals remained largely stable, with a few Superior Grade malls witnessing 8–9% growth due to consistent traction.
• Ahmedabad recorded retail leasing volume of ~50,000 sq ft, a 36% drop as compared to the same period last year. Main streets led with a dominant 87% share in leasing while the remaining was contributed by malls. Fashion (53%) and lifestyle and accessories brands (39%) led demand in the first quarter in terms of segments. Prominent main streets such as Sindhu Bhavan Road, Nikol, and Iskcon-Ambli Road contributed to ~6% of the overall mainstreet leasing. Mainstreet retail between Sarkhej to Thaltej locations (SG Highway) have shown appreciation of 5-6% on qoq basis and 9-10% on yoy basis.
• Retail leasing in Kolkata remained steady in Q1 2025 at approximately 37,500 sq. ft., witnessing a marginal 4% YoY dip. High streets remained the epicentre of activity, accounting for over 90% of leasing amid limited availability in Grade A malls. Prime CBD stretches like Theatre Road, Elgin Road, and Chowringhee Road attracted strong demand from fashion and F&B players, while locations such as Alipore and Chinar Park also saw healthy traction. In terms of overall leasing transactions, fashion dominated with over 50% share, followed by F&B (30%) and accessories & lifestyle brands (11%). No new mall supply was added during the quarter, though upcoming completions in Joka and Alipore are expected to add 1.35 msf of space later in the year. Grade A mall vacancy remained extremely tight at 2.6%, reflecting sustained demand for quality retail space. Rentals across malls and main streets remained stable, with minor upticks of 1–2% in select suburban high streets like Gariahat and Kankurgachi.