India’s retail space is booming, with a strong jump in leasing activity last quarter. A new Cushman & Wakefield report shows that from July to September, the top eight Indian cities rented out 2.41 million square feet of retail floorplan. That’s a 7.6 % increase from the previous quarter and a big hit on the market’s growth.
So far this year, retailers have signed up for 7.02 million square feet – a 25.2 % rise over last year’s numbers. That puts the 2025 total in line with, or even ahead of, the 7.88 million square feet seen in 2024. The uptick shows steady demand from both shoppers on high streets and shoppers in malls.
The biggest driver is the Delhi‑NCR region, which snagged 1.16 million square feet – 48 % of the Q3 lease volume. That’s a 15 % jump from the third quarter of 2024. High‑street rentals filled 1.25 million square feet, a modest 1.5 % growth. Malls, however, had two straight quarters without new Grade‑A openings, so total retail additions stay small at 1.3 million square feet YTD. The supply squeeze has pushed vacancy down 91 basis points to 7.25 %.
Rent prices are holding steady in malls, while street‑level rents ticked up 1 %. Domestic Indian brands still dominate, making up 82.5 % of all lease activity, while overseas chains focus on mall launches.
Fashion is the hottest segment, taking 21.4 % of the new leases, followed by food and beverage at 19.3 % and entertainment at 15.8 %. The big three metros—Mumbai, Delhi‑NCR, and Hyderabad—account for almost two‑thirds of this year’s leasing, with Mumbai alone anchoring 24.5 %.
“Retail in India keeps growing, powered by changing shopper habits and a strong demand for premium spaces,” said Gautam Saraf, Executive Managing Director‑Mumbai and New Business, Cushman & Wakefield. “Supply is tight right now, but the market shows deep resilience.”
The outlook stays positive. The report forecasts about 3 million square feet of new space coming online in Q4, and a total pipeline of 15.5 million square feet by 2027, which should help balance the welcome surge in demand.
Source: ianslive
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