Retail Sector Records 2.4 MSF Leasing Volume in Q3 2025: Cushman & Wakefield

Gurugram, October 8, 2025: India’s retail sector continued to demonstrate strength in Q3 2025 with gross leasing volume (GLV) reaching 2.41 million square feet (MSF) across the top eight cities, according to Cushman & Wakefield’s Q3 Retail Market Beat Report. This represents a 7.6 per cent quarter-on-quarter (QOQ) increase.

Year-to-date (YTD) leasing volumes touched 7.02 MSF, reflecting a 25.2 per cent year-on-year (y0y) growth. At this pace, the sector is well-positioned to surpass the 2024 full-year GLV of 7.88 MSF, underscoring steady occupier demand and healthy momentum across both high streets and malls.

In Q3 2025, malls absorbed 1.16 MSF, accounting for 48 per cent of total leasing, marking around 15 per cent quarter-on-quarter (QOQ) growth. High streets accounted for 52 per cent share, with 1.25 MSF leased, recording a 1.5 per cent increase QOQ. Notably, this was the second straight quarter without any new Grade A mall completions, keeping YTD additions at 1.3 MSF. This supply constraint pushed vacancy levels down 91 bps QOQ to 7.25 per cent with Grade A+ malls dipping further by 45 bps to 2.27 per cent, highlighting the need for fresh inventory. Mall rents, meanwhile, held steady QOQ, while main streets registered a 1 per cent quarterly uptick.

Domestic retailers continued to dominate leasing activity with an 82.5 per cent share, showcasing the strength and expansion of home-grown brands. International players accounted for 17.5 per cent, focusing largely on malls to benefit from high-visibility and professional management. Category-wise, fashion (21.4 per cent), food & beverage (F&B) (19.3 per cent) and entertainment (15.8 per cent) 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 per cent share (0.6 MSF) while Hyderabad and Delhi NCR followed closely at 21 per cent each (0.51 MSF). Together, these three markets captured nearly two-thirds of YTD leasing.

Gautam Saraf, Executive Managing Director – Mumbai & New Business, Cushman & Wakefield, said: “India’s retail sector continues its growth trajectory, driven by evolving consumer preferences and growing demand for quality retail spaces. The rising interest in fashion, F&B and entertainment categories points to a maturing consumer base with higher disposable incomes. This environment is encouraging domestic retailers to expand their footprint while attracting more international brands to India’s high-potential market.”

He added, “Current supply constraints, while challenging in the near term, also underscore the sector’s underlying strength. The pipeline of ~3 MSF in Q4 and ~15.5 MSF (Q4 25-2027) should help restore balance. Overall, we’re seeing a market whose fundamentals remain encouraging for sustained growth.”

City Specific Insights

Ahmedabad: Ahmedabad recorded retail leasing volume of 0.06 in Q3 2025, reflecting 59 per cent increase on QOQ basis. Main streets dominated leasing activity with an 88 per cent share of total lease volumes, and the malls contributed 12 per cent.

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

Chennai: Chennai’s retail market maintained healthy momentum in Q3, recording a leasing volume of ~0.16 MSF, an 8 per cent YoY growth. Main streets dominated leasing activity with an 88 per cent share, recording 0.14 MSF of leasing – up 29 per cent over the previous quarter. Malls recorded a leasing volume of 0.02 MSF.

Delhi/NCR: Retail leasing in Delhi NCR stood at ~0.5 MSF in Q3 2025 – an increase of 70 per cent QOQ and 88 per centYoY 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 Q3-25.

Hyderabad: Retail leasing in Hyderabad rose to ~0.51 MSF in Q3 2025, up 3.5 per centYoY. YTD activity totaled 2.04 MSF, reflecting a 9.3 per cent 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: The city recorded retail leasing volumes of 0.06 MSF in Q3, a 24 per cent 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 per cent.

Mumbai: Retail leasing activity in Q3 2025 reached 0.59 MSF, witnessing an increase of ~13 per cent QoQ and a significant growth of 2.7x YoY. Malls remained the preferred retail format, recording 0.49 MSF of leasing and representing a substantial 84 per cent share of overall leasing activity. Mainstreet retail leasing accounted for 0.10 MSF during the quarter, representing about 16 per cent of total leasing transactions.

Pune: In Q3 2025, retail leasing activity totaled ~0.33 MSF, with malls accounting for 85 per cent of this at 0.28 MSF and the remaining 15 per cent contributed by high streets. The city saw a 43 per cent QoQ increase in overall retail leasing and a remarkable 85 per cent rise YoY.