The second quarter of calendar year 2025 saw 2.24 million square feet (msf) of leasing across malls and high street locations in the top eight cities, a 5.4 percent dip on-quarter and 6.3 percent dip on-year.
However, at 4.61 msf, H12025 leasing volumes saw a 17 percent on-year growth, signifying strong retailer sentiment amid stable consumer demand, according to a report from Cushman & Wakefield.
The report, released on July 24, stated that in Q2CY25 high street locations dominated with 55 percent of the leasing volume, while shopping malls accounted for around 45 percent.
Hyderabad, Mumbai, and Delhi-NCR were the top-performing markets with leasing volumes of 0.76 msf, 0.52 msf, and 0.3 msf, respectively. Collectively, they accounted for over 70 percent of the leasing in the quarter.
These cities were followed by Pune (0.23 msf), Bengaluru (0.18 msf), Chennai (0.16 msf), Kolkata (0.05 msf), and Ahmedabad (0.04 msf). With respect to growth in leasing volume, Mumbai and Pune saw a 1.6X and 1.5X rise in volume, respectively, on-year during the quarter, the report added.
No new mall supply was added in Q2 2025, and grade A mall completions contributed 1.3 msf in H1 2025. As a result, mall vacancy levels dropped by around 77 basis points (bps) to 8.16 percent in Q2 2025, with grade A malls witnessing even lower vacancies of 4.28 percent.
Market observers said that this trend highlighted the growing demand for premium retail assets.
Suvishesh Valsan, Head, Research, Cushman & Wakefield, said that India’s retail sector continues to demonstrate strong momentum, with consistent growth in leasing volumes pointing to a healthy underlying demand.
“High streets remained the dominant driver of activity, while vacancy levels in grade A malls have tightened further – reflecting a clear and growing preference for high-quality and experience-led retail spaces. Looking ahead, we remain optimistic. Nearly 4 msf of new grade A supply is expected in the second half of the year, largely across key metros such as Mumbai, Delhi-NCR, and Hyderabad. This should open up fresh opportunities for retailers to expand in line with evolving consumer expectations,” he said.
In terms of category demand, food & beverages and fashion were the primary lessors across both mall and high street formats, accounting for more than 50 percent of the leasing (1.17 msf), reflecting consumers’ growing preference for lifestyle-driven retail and experiential offerings.
The wellness category also posted strong growth with 8 percent of the leasing volume (0.18 msf) -- a 2X on-year growth albeit a 13 percent on-quarter dip. Meanwhile, supermarkets and hypermarkets (0.18 msf) saw 3X on-quarter and 10 percent on-year growth.
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