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

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.

Also Read: 35% of companies see full offices after 2 years

The post India Retail Leasing Sees 2.24 MSF Activity in Q2 2025; Malls Gain Traction as Vacancies Tighten appeared first on Square Feat India.

“The surge is also prompted by a perceivable shortfall in new supply of Grade A malls across cities,” says Anuj Kejriwal, CEO & MD, ANAROCK Retail. “The data speaks for itself.”

New Grade A Mall Supply (CY 2025-26): Top 7 Cities

• Total new Grade A mall supply: 16.6 Mn sq. ft.
• Delhi-NCR and Hyderabad alone to contribute ~65% of this total supply.

Mall Leasing & Vacancy Trends (CY 2021–26)

*Projected

“Despite the sudden spike in new supply, we do not foresee a severe oversupply scenario, as leasing demand remains very strong,” Kejriwal noted.

Rising Demand for Organized Retail Spaces

One of the strongest drivers of this mall boom is the entry of over 60 global retail brands across categories like:

• Fashion
• Electronics
• Lifestyle
• Food & Beverage (F&B)

These brands are choosing high-footfall malls and high streets, boosting demand for high-quality organized retail infrastructure.

Retail Boom Reaches Tier 2 & Tier 3 Cities

The retail expansion is no longer restricted to metros. Smaller cities are witnessing a consumption renaissance, spurred by:

• Higher disposable incomes
• Greater smartphone & internet penetration
• Faster ecommerce adoption

Ecommerce Shopping Share (By City Tier)

*Projected

• Online shoppers in India:
  • 2020: 140 Mn
  • 2024: 260 Mn
  • 2030 (projected): 300 Mn
  • 2035 (projected): 700 Mn

Outlook

With leasing activity staying robust and vacancy rates projected to stabilize around 8.2%–8.5%, the organized retail space in India is on a strong upward trajectory. The convergence of global brand entry, consumer confidence, and emerging consumption centers positions India as one of the most dynamic retail markets in the world today.

Also Read: Mall Space Demand Surges, Supply Struggles to Keep Up for Third Year

The post 16.6 Mn Sq. Ft. of New Mall Space by 2026 appeared first on Square Feat India.