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.

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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.