High streets drive growth as Hyderabad, Mumbai, and Delhi NCR lead leasing surge in Q1 2025
India’s retail real estate market continues its upward trajectory, clocking 2.4 million square feet (MSF) of leasing activity in the first quarter of 2025—a robust 55 per cent year-on-year (YoY) increase, according to Cushman & Wakefield’s latest Retail MarketBeat Report. The report notes a 6 per cent quarter-on-quarter (QoQ) increase as well, with Hyderabad, Mumbai, and Delhi NCR together contributing a dominant 74 per cent of the total leasing volume across the top eight cities.
Main streets remain the primary choice for retailers, accounting for 1.69 MSF—or roughly two-thirds—of the overall leasing activity. High street locations in Delhi NCR, Mumbai, Bengaluru, and Hyderabad witnessed heightened retailer interest, while mall leasing stood at 0.72 MSF during the quarter.
City-wise performance and highlights
Hyderabad emerged as the frontrunner, recording 0.8 MSF in retail leasing—a staggering 106 per cent YoY growth—contributing 34 per cent to the national tally. The city’s leasing activity was largely concentrated in prominent and emerging high streets like HITEC City, Jubilee Hills, Kothapet, and Kompally. Homegrown brands led the charge, accounting for 98 per cent of all leasing, with fashion, wellness, and F&B driving demand.
Mumbai followed closely with 0.58 MSF (24 per cent share), showcasing a 259 per cent YoY surge. This was fuelled by strong uptake in newly developed high streets and operational Grade A malls such as Oberoi Sky City in Borivali and Aurum Square in Ghansoli. Malls accounted for 55 per cent of the leasing activity here. Rentals on main streets like Colaba Causeway and Kemps Corner saw over 10 per cent YoY appreciation.
Delhi NCR captured 17 per cent of the total leasing activity (0.41 MSF), growing 57 per cent YoY. Main streets dominated with a 61 per cent share, and Gurugram led leasing within the region with a 52 per cent contribution. High-performing categories included fashion, F&B, entertainment, and department stores. Rental growth was visible across top locations, with Galleria Market witnessing a 20 per cent YoY increase.
Other cities such as Bengaluru (0.19 MSF), Chennai (0.17 MSF), and Pune (0.17 MSF) reported steady performance. Bengaluru saw 75 per cent of leasing on main streets, with fashion and F&B leading demand. Chennai’s activity was almost entirely on main streets (94 per cent), particularly in submarkets like Anna Nagar and T. Nagar. Pune recorded a near 60 per cent QoQ growth, with suburban malls and peripheral high streets witnessing traction.
Ahmedabad and Kolkata saw relatively muted activity, with leasing volumes at ~50,000 sq ft and 37,500 sq ft respectively. High street leasing continued to dominate in both markets amid limited mall space.
Segment-wise demand and rental trends
Fashion and entertainment dominated demand in malls, jointly contributing to 34 per cent of the leasing volume. On main streets, fashion and F&B remained the most sought-after segments, together making up 0.8 MSF of the total.
Foreign brands accounted for approximately 8 per cent of transaction volume, while Indian homegrown brands drove 92 per cent of leasing activity, highlighting a strong push towards domestic retail expansion.
Rental trends showcased positive momentum across several key markets. Main street locations in Delhi NCR, Mumbai, and Bengaluru reported rental hikes of up to 10–20 per cent YoY. Mall rentals were more stable, with a 2–3 per cent QoQ increase in some Grade A properties.
Looking ahead
The report forecasts an acceleration in mall leasing activity with nearly 6.4 MSF of new mall supply expected by the end of 2025, 58 per cent of which will be premium Grade A+ stock. India’s current Grade A mall inventory stands at approximately 63 MSF.
“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, Capital Markets and Head – Retail, India at Cushman & Wakefield. “We’re witnessing demand chasing quality supply, with new retail hubs emerging in mixed-use developments. With close to 7 million square feet of new supply expected over the next three quarters, the sector’s positive momentum is poised to continue.”
As India’s consumer base expands and both domestic and international brands scale their footprint, retail real estate is set to remain a key pillar in the country’s urban commercial growth story.
