Hyderabad is leading in retail leasing with 0.8 million square feet (MSF) of activity in Q2 2025: Cushman & Wakefield

Hyderabad, 24 July 2025: Cushman & Wakefield, one of the largest and fastest growing real estate services firms in India, today released its Q2-2025 Retail Market Beat Report, highlighting sustained momentum in Hyderabad’s retail real estate market. The city recorded ~0.8 million square feet (MSF) of leasing activity during the second quarter, maintaining its position as one of India’s most active retail markets. With this, total retail leasing in H1 2025 stood at 1.5 MSF – an 11% rise over H1 2024 – signalling strong and consistent occupier interest despite tight supply. Leasing in Q2 was once again led by high street locations, which accounted for a commanding 89% share. Suburban pockets such as Bachupally and Kompally emerged as key growth corridors, contributing 57% of the quarter’s leasing. Core city locations like Ameerpet and Nizampet continued to see steady traction, accounting for the remaining 43%. Homegrown brands remained the driving force, comprising 97% of the leasing activity in Q2. Food & Beverage (34%) emerged as the top demand driver, followed by Fashion (14%), reflecting strong consumer appetite for experiential dining and lifestyle offerings. No new Grade-A mall supply was added in Q2 2025, keeping vacancy rates at a low 1.85% in Hyderabad’s superior malls. Average malls, however, continued to report higher vacancies. Rental trends on high streets showed marginal yet steady growth. Jubilee Hills led with a 13.6% YoY rental increase, followed by localities like Attapur and Madinaguda/ Chandanagar, which also posted upward rental movements. Meanwhile, mall rentals remained largely stable during the quarter. Looking ahead, Hyderabad is expected to witness a record retail supply of 2.8 msf by 2027, with 1.7 MSF of new retail supply expected to become operational in the next two quarters. Hyderabad is poised to retain its momentum as a preferred retail expansion market for both national and global brands. At the National level, For the top 8 cities, the second quarter of 2025 recorded ~ 2.24 million square feet (MSF) of leasing across malls and high streets. The figure is in line with the average quarterly volume observed over the past four quarters, though it represents a slight 5.4% dip Q-o-Q and a 6.3% dip Y-o-Y. With this, H1 2025 leasing volumes stood at 4.61 MSF, marking a 17% y-o-y growth. Malls accounted for 45% of leasing volume in Q2 (1.01 MSF) – a 42% Q-o-Q rise, and the highest mall share in the past five quarters, signaling growing interest in experience-driven, structured retail formats. However, high streets witnessed a 26% q-o-q decline, although they continued to dominate with 55% (1.23 MSF) of leasing activity, underscoring the persistent undersupply of quality mall stock across cities. Suvishesh Valsan, Head, Research- India at Cushman & Wakefield said, “India’s retail sector continues to demonstrate strong momentum, with consistent growth in leasing volumes pointing to a healthy underlying demand. High streets remained the dominant driver of activity, while vacancy levels in Grade-A malls have tightened further – reflecting a clear and growing preference for high-quality and experience-led retail spaces. Looking ahead, we remain optimistic. Nearly 4 MSF of new Grade A supply is expected in the second half of the year, particularly across key metros such as Mumbai, Delhi-NCR, and Hyderabad. This should help bring more balance to the market and open up fresh opportunities for retailers to expand in line with evolving consumer expectations. What’s also noteworthy is the growing interest from international brands and the sharp uptick in leasing across categories like wellness and grocery both of which signal a broader shift in India’s consumption landscape. As new supply comes online, we expect leasing momentum to further accelerate, particularly in top-tier urban markets.” About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.