India's retail sector continued to demonstrate strength in Q3 2025 with gross leasing volume (GLV) reaching 2.41 million square feet (MSF) across the top eight cities, according to Cushman & Wakefield's Q3 Retail Market Beat Report. This represents a 7.6% quarter-on-quarter (q-o-q) increase.
Year-to-date (YTD) leasing volumes touched 7.02 MSF, reflecting a 25.2% y-o-y growth. At this pace, the sector is well-positioned to surpass the 2024 full-year GLV of 7.88 MSF, underscoring steady occupier demand and healthy momentum across both high streets and malls.
In Q3 2025, malls absorbed 1.16 MSF, accounting for 48% of total leasing, marking around 15% q-o-q growth. High streets accounted for 52% share, with 1.25 MSF leased, recording a 1.5% increase q-o-q.
Notably, this was the second straight quarter without any new Grade A mall completions, keeping YTD additions at 1.3 MSF. This supply constraint pushed vacancy levels down 91 bps q-o-q to 7.25% with Grade A+ malls dipping further by 45 bps to 2.27%, highlighting the need for fresh inventory.
Mall rents, meanwhile, held steady q-o-q, while main streets registered a 1% quarterly uptick.
Domestic retailers continued to dominate leasing activity with an 82.5% share, showcasing the strength and expansion of home-grown brands. International players accounted for 17.5%, focusing largely on malls to benefit from high-visibility and professional management.
Category-wise, fashion (21.4%), food & beverage (F&B) (19.3%) and entertainment (15.8%) segments emerged as major demand drivers.
At the city-level, Mumbai, Delhi NCR and Hyderabad led the activity in Q3. Mumbai posted a 24.5% share (0.6 MSF) while Hyderabad and Delhi NCR followed closely at 21% each (0.51 MSF). Together, these three markets captured nearly two-thirds of YTD leasing.
|
Gross Leasing Volume (MSF) |
Q2 2025 (MSF) |
Q3 2025 (MSF) |
Q3 2025 % share |
|
Ahmedabad |
0.04 |
0.06 |
2.7% |
|
Bengaluru |
0.18 |
0.18 |
7.3% |
|
Chennai |
0.16 |
0.16 |
6.8% |
|
Delhi NCR |
0.30 |
0.51 |
21.3% |
|
Hyderabad |
0.76 |
0.51 |
21.2% |
|
Kolkata |
0.05 |
0.06 |
2.5% |
|
Mumbai |
0.52 |
0.59 |
24.5% |
|
Pune |
0.23 |
0.33 |
13.8% |
|
Total |
2.24 |
2.41 |
|
Gautam Saraf, Executive Managing Director – Mumbai & New Business, Cushman & Wakefield, said: “India's retail sector continues its growth trajectory, driven by evolving consumer preferences and growing demand for quality retail spaces. The rising interest in fashion, F&B and entertainment categories points to a maturing consumer base with higher disposable incomes. This environment is encouraging domestic retailers to expand their footprint while attracting more international brands to India's high-potential market.”
He added, “Current supply constraints, while challenging in the near term, also underscore the sector’s underlying strength. The pipeline of ~3 MSF in Q4 and ~15.5 MSF (Q4 25-2027) should help restore balance. Overall, we're seeing a market whose fundamentals remain encouraging for sustained growth.”
