- Leasing volume up 25% in Q3
- Revealed in Cushman & Wakefield report
Retail leasing is witnessing strong momentum across major cities in India. In Q3 2025, leasing volume increased by 25% to reach 2.41 million sq ft. On a year-on-year basis, this represents a 25.2% growth, while compared to Q2, it marks a 7.6% increase, according to the latest report by Cushman & Wakefield. The growth is attributed to steady occupier demand across both high streets and malls.
For the year so far, total retail leasing has reached 7.02 million sq ft. The report estimates that total retail leasing in 2025 may surpass 7.88 million sq ft recorded in 2024. Of the total retail leasing in Q3, 1.16 million sq ft (48%) was in malls, while high streets accounted for 52%, with 1.25 million sq ft leased. Additionally, domestic retailers contributed 82.5% of the total leasing activity.
International brands have been focusing heavily on mall openings, with category-wise demand driven primarily by Fashion (21.4%), Food & Beverages (19.3%), and Entertainment (15.8%). So far this year, Mumbai, Delhi-NCR, and Hyderabad together account for nearly two-thirds of total leasing activity, with Mumbai alone contributing 24.5%.
“Driven by changing consumer preferences and growing demand for quality retail spaces, India’s retail sector continues its growth trajectory. Although current supply constraints pose challenges in the near term, increasing consumer preference for premium retail assets is fueling demand,” said Gautam Saraf, Executive MD of Cushman & Wakefield.
City-wise leasing activity shows that Hyderabad recorded 0.51 million sq ft leased, up 3.5% from 0.49 million sq ft in the same period last year. Delhi-NCR saw retail leasing surge 87% to 0.51 million sq ft from 0.27 million sq ft last year, while Mumbai’s leasing doubled to 0.59 million sq ft from 0.22 million sq ft. Pune also witnessed an 85% increase to 0.33 million sq ft. On the other hand, Bengaluru experienced a 13% decline to 0.18 million sq ft, Chennai grew 8% to 0.16 million sq ft, Kolkata increased 12% to 0.06 million sq ft, and Ahmedabad fell 27% to 0.06 million sq ft. This data highlights the strong performance in key metros like Mumbai, Delhi-NCR, Hyderabad, and Pune, while other cities showed mixed trends.