Today: Oct 21, 2025

India’s retail sector records 2.4 million sq ft of leasing volume in Q3 2025: Report, ETRealty

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4 hours ago


<p>Representative Image</p>
Representative Image

NEW DELHI: India’s retail sector continued to demonstrate strength in Q3 2025 with gross leasing volume (GLV) reaching 2.41 million sq ft across the top eight cities, according to a report by Cushman & Wakefield. This represents a 7.6% quarter-on-quarter increase.

Year-to-date leasing volumes touched 7.02 million sq ft, reflecting a 25.2% year-on-year growth. At this pace, the sector is well-positioned to surpass the 2024 full-year GLV of 7.88 million sq ft, underscoring steady occupier demand and healthy momentum across both high streets and malls.

In Q3 2025, malls absorbed 1.16 million sq ft, accounting for 48% of total leasing, marking around 15% q-o-q growth. High streets accounted for 52% share, with 1.25 million sq ft leased, recording a 1.5% increase quarter-on-quarter. Notably, this was the second straight quarter without any new Grade A mall completions, keeping year-to-date additions at 1.3 million sq ft.

This supply constraint pushed vacancy levels down 91 bps quarter-on-quarter 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 quarter-on-quarter, 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 million sq ft) while Hyderabad and Delhi NCR followed closely at 21% each (0.51 million sq ft). Together, these three markets captured nearly two-thirds of year-to-date leasing.

Gautam Saraf, executive managing director – Mumbai & New Business, of the company said, “The rising interest in fashion, F&B and entertainment categories points to a maturing consumer base with higher disposable incomes. Current supply constraints, while challenging in the near term, also underscore the sector’s underlying strength. The pipeline of three million sq ft in Q4 and 15.5 million sq ft (Q4 25–2027) should help restore balance.”

City-specific insights from the report

Ahmedabad recorded retail leasing volume of 0.06 million sq ft in Q3 2025, reflecting 59% increase on q-o-q basis. Main streets dominated leasing activity with an 88% share of total lease volumes, and the malls contributed 12%.

Bengaluru recorded retail leasing volumes of around ~0.18 million sq ft. With a share of nearly 89%, malls dominated retail leasing in the quarter. Mall lease volumes jumped by nearly 59% on a quarterly basis. With a share of 11%, main street lease volume was relatively lower compared to the previous quarters.

Chennai’s retail market maintained healthy momentum in Q3, recording a leasing volume of ~0.16 million sq ft, an 8% year-on-year growth. Main streets dominated leasing activity with an 88% share, recording 0.14 million sq ft of leasing — up 29% over the previous quarter. Malls recorded a leasing volume of 0.02 million sq ft.

Retail leasing in Delhi NCR stood at ~0.5 million sq ft in Q3 2025 – an increase of 70% q-o-q and 88% year-on-year basis. Out of the 179,000 sq ft of leasing witnessed in malls, ~29,000 was fresh space take-up, while the rest were churn or renewals. Main-street sites secured almost two-thirds of transaction volume in Q3 2025.

Retail leasing in Hyderabad rose to ~0.51 million sq ft in Q3 2025, up 3.5% year-on-year. Year-to-date activity totaled 2.04 million sq ft, reflecting a 9.3% increase over the same period in 2024. High streets accounted for the bulk of leasing this quarter, given the limited availability of Grade A mall supply.

Kolkata recorded retail leasing volumes of 0.06 million sq ft in Q3, a 24% growth on a quarterly basis. In absence of adequate space across the city’s Grade A malls, main streets continued to heavily dominate retail leasing activity with a share of around 98%.

Mumbai: Retail leasing activity in Q3 2025 reached 0.59 million sq ft, witnessing an increase of ~13% quarter-on-quarter and a significant growth of 2.7x year-on-year. Malls remained the preferred retail format, recording 0.49 million sq ft of leasing and representing a substantial 84% share of overall leasing activity. Main street retail leasing accounted for 0.10 million sq ft during the quarter, representing about 16% of total leasing transactions.

Pune: In Q3 2025, retail leasing activity totaled ~0.33 million sq ft, with malls accounting for 85% of this at 0.28 million sq ft and the remaining 15% contributed by high streets. The city saw a 43% q-o-q increase in overall retail leasing and a remarkable 85% rise year-on-year.

  • Published On Oct 21, 2025 at 10:13 AM IST

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