India’s retail sector continues its growth streak, with 2.24 million square feet (MSF) of leasing activity recorded in Q2 2025 across malls and high streets in the top 8 cities, according to Cushman & Wakefield’s latest Retail Market Beat report.
Despite a minor 5.4% dip QoQ and 6.3% YoY, the sector remains healthy, backed by strong H1 2025 volumes of 4.61 MSF — a 17% YoY growth, reflecting stable consumer demand and upbeat retailer sentiment.
📊 Q2 2025 Retail Leasing Snapshot
| City | Q2 2025 (MSF) | QoQ Change | YoY Change |
|---|---|---|---|
| Hyderabad | 0.76 | -0.9% | -22.5% |
| Mumbai | 0.52 | -9.6% | 🔺155.9% |
| Delhi-NCR | 0.30 | -26.0% | -41.4% |
| Pune | 0.23 | 🔺37.8% | 🔺148.7% |
| Bengaluru | 0.18 | -6.3% | -44.2% |
| Chennai | 0.16 | -8.6% | 🔺50.4% |
| Kolkata | 0.05 | 🔺29.3% | -23.0% |
| Ahmedabad | 0.04 | -17.2% | -63.2% |
| TOTAL | 2.24 | -5.4% | -6.3% |
🛍️ Format Split: Malls vs High Streets
- High Streets: 1.23 MSF (55%)
- Saw a 26% QoQ decline, but remain dominant due to limited mall stock.
- Malls: 1.01 MSF (45%)
- 42% QoQ growth, highest share in 5 quarters.
- Vacancy dropped by 77 bps to 8.16%.
- Superior malls saw just 4.28% vacancy.
🏗️ New Supply Outlook
“Nearly 4.16 MSF of Grade A malls are expected by Q4 2025, especially across Mumbai, Delhi-NCR, and Hyderabad,”
— Suvishesh Valsan, Head, Research India, Cushman & Wakefield.
This influx is expected to ease tight vacancies and unlock new opportunities for expansion-hungry retailers.
🏙️ City-Wise Retail Market Highlights
Mumbai
- Leasing: 0.52 MSF
- YoY: 🔺1.6x growth
- Vacancy: ⬆️7.9% (70 bps rise due to relocations)
Hyderabad
- Leasing: 0.76 MSF
- Vacancy in superior malls: 1.85%
- Expected supply: 1.7 MSF by Q4 2025
Delhi-NCR
- Leasing: 0.3 MSF
- Vacancy: ⬇️11.9%
- Expected supply: 1.7 MSF by year-end
Pune
- Leasing: 0.23 MSF
- YoY: 🔺1.5x growth
- Vacancy in superior malls: 5–6%
🧾 Retailer Participation & Segment Trends
| Category | Share (Q2 2025) | Notes |
|---|---|---|
| Domestic Retailers | 86% (1.93 MSF) | Continued dominance |
| International Brands | 14% (0.31 MSF) | Up from 8.5%, driven by mall leasing |
| Food & Beverage + Fashion | 52% (1.17 MSF) | Lifestyle-driven demand |
| Wellness | 8% (0.18 MSF) | 2x YoY growth |
| Supermarkets/Hypermarkets | 8% (0.18 MSF) | 3x QoQ, 10% YoY growth |
📌 Quote
“The preference for experience-led and quality retail spaces is clear. With international brands and emerging categories like wellness and grocery gaining traction, we expect leasing momentum to rise further in top-tier metros,”
— Suvishesh Valsan, Cushman & Wakefield.
🔮 Outlook: What Lies Ahead?
- Q3–Q4 2025 to see over 4 MSF of fresh Grade A retail space.
- Vacancy tightening in superior malls indicates landlord-favorable conditions.
- Expansion opportunities expected to grow for both domestic and global retailers.
