India’s retail real estate sector logged strong growth in the third quarter of 2025, with gross leasing volumes (GLV) across the top eight cities reaching 2.4 million sq ft — a year-on-year jump of nearly 45%, according to Cushman & Wakefield’s Q3 Retail Market Beat Report, as published by Hindustan Times.
The figure represents a rise from 1.66 million square feet leased during the same period last year and a 7.6% increase over the previous quarter. Malls accounted for 48% of the total leasing activity, while high streets captured 52%. Mumbai led the market with a 24.5% share, followed by Hyderabad and Delhi NCR, each at 21%.
Year-to-date, retail leasing volumes hit 7.02 million square feet, up 25.2% from the same period last year. At this pace, the sector is projected to exceed the full-year 2024 GLV of 7.88 million square feet, signaling continued occupier interest and a resilient market across both malls and high streets.
Combined, Mumbai, Hyderabad, and Delhi NCR contributed nearly two-thirds of leasing activity in the year so far.
In Mumbai, leasing volumes for Q3 totaled 0.59 million square feet—marking a quarter-on-quarter rise of approximately 13% and a 2.7-times increase from Q3 2024. Mall spaces dominated the activity, accounting for 0.49 million square feet or 84% of total leasing. High street transactions comprised the remaining 16%, at 0.10 million square feet.
Retail leasing in Delhi NCR stood at roughly 0.5 million square feet in Q3 2025, up 70% from the previous quarter and 88% from a year ago. Of this, 179,000 square feet were leased in malls, including 29,000 square feet of new take-up. The rest reflected churn and renewals. High streets captured almost two-thirds of the region’s leasing volume during the quarter.
Bengaluru reported 0.18 million square feet in leasing volume, with malls accounting for 89% of that share. Mall leasing in the city rose by nearly 59% quarter-over-quarter. High street leasing contributed the remaining 11%, marking a decline compared to earlier quarters.
Across India, malls and high streets split leasing activity almost evenly in Q3. Malls absorbed 1.16 million square feet, or 48% of total leasing—a 15% quarter-over-quarter increase. High streets slightly outpaced malls with 1.25 million square feet leased, up 1.5% from Q2.
Despite growing demand, the market saw no new Grade A mall completions for the second consecutive quarter, keeping year-to-date additions at 1.3 million square feet. This limited new supply helped push retail vacancy down by 91 basis points to 7.25%. In Grade A+ malls, vacancy dropped further by 45 basis points to just 2.27%, indicating tightening availability of prime space.
Mall rents remained flat compared to Q2, while high street rents saw a 1% uptick. Domestic retailers were the primary demand drivers, accounting for 82.5% of total leasing in Q3. International brands comprised 17.5%, primarily opting for mall spaces due to their visibility and professional management.
Among retail segments, fashion led with a 21.4% share of leasing, followed by food and beverage (19.3%) and entertainment (15.8%).
“India’s retail sector continues its growth trajectory, driven by evolving consumer preferences and growing demand for quality retail spaces,” said Gautam Saraf, Executive Managing Director – Mumbai New Business, Cushman & Wakefield.
He noted that the rising interest in fashion, dining, and entertainment indicates a maturing consumer base with increased spending capacity. “This environment is encouraging domestic retailers to expand their footprint while attracting more international brands to India’s high-potential market,” Saraf said.
While current supply shortages may pose near-term challenges, they reflect strong market fundamentals. The report forecasts the addition of around 3 million square feet in Q4 and a further 15.5 million square feet between Q4 2025 and 2027, which is expected to help restore supply-demand balance.