India’s retail leasing jumps 45% YoY in Q3 2025; Mumbai leads with 24.5% share

India’s retail sector sees 2.4 mn sq ft leasing in Q3 2025, up 7.6% QoQ; Malls account for 48% and high streets 52% of activity, a report has said

India’s retail sector recorded a gross leasing volume (GLV) of 2.41 million sq ft across the top eight cities in Q3 2025, marking a nearly 45% increase from 1.66 million sq ft a year ago, according to Cushman & Wakefield’s Q3 Retail Market Beat Report. Mumbai led the activity with a 24.5% share, followed by Hyderabad and Delhi NCR at 21% each.

India’s retail sector recorded a gross leasing volume (GLV) of 2.41 million sq ft across the top eight cities in Q3 2025, marking a nearly 45% increase from 1.66 million sq ft a year ago (Photo for representational purposes only) (Pixabay)

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

At the city-level, Mumbai, Delhi NCR and Hyderabad led the activity in Q3. Mumbai posted a 24.5% share (0.6 mn sq ft) while Hyderabad and Delhi NCR followed closely at 21% each (0.51 mn sq ft). Together, these three markets captured nearly two-thirds of YTD leasing, the report showed.

In Mumbai, retail leasing activity in Q3 2025 reached 0.59 mn sq ft, witnessing an increase of ~13% q-o-q and a significant growth of 2.7x y-o-y. Malls remained the preferred retail format, recording 0.49 mn sq ft of leasing and representing a substantial 84% share of overall leasing activity. Mainstreet retail leasing accounted for 0.10 mn sq ft during the quarter, representing about 16% of total leasing transactions.

Retail leasing in Delhi NCR stood at ~0.5 mn sq ft in Q3 2025 – an increase of 70% q-o-q and 88% y-o-y 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, the documents showed.

Bengaluru recorded retail leasing volumes of around ~0.18 mn 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.

Malls account for almost half of the total leasing

In Q3 2025, malls absorbed 1.16 mn sq ft, accounting for 48% of total leasing, marking around 15% q-o-q growth. High streets accounted for 52% share, with 1.25 mn sq ft leased, recording a 1.5% increase q-o-q. Notably, this was the second straight quarter without any new Grade A mall completions, keeping YTD additions at 1.3 mn sq ft. This supply constraint pushed vacancy levels down 91 bps q-o-q to 7.25% with Grade A+ malls dipping further by 45 bps to 2.27%, highlighting the need for fresh inventory, the report showed.

Mall rents, meanwhile, held steady q-o-q, 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.

“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,” said Gautam Saraf, Executive Managing Director, Mumbai New Business, Cushman & Wakefield.

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