Leasing volume in top Indian cities surges 25 pc at 2.41 million square feet

New Delhi, Oct 8 (IANS) India’s retail sector demonstrated strong demand in the July-September period (Q3 2025), with gross leasing volume in the top eight cities hitting 2.41 million square feet (MSF) -- marking a 7.6 per cent increase from the previous quarter (QoQ), a report said on Wednesday.

According to a report from Cushman & Wakefield, year-to-date (YTD) leasing reached 7.02 million square feet, a 25.2 per cent year-on-year (YoY) growth, indicating the market is on track to surpass the 2024 full-year GLV of 7.88 MSF.

The growth underscored steady occupier demand and healthy momentum across both high streets and malls, the report said.

Mills absorbed 1.16 million square feet (MSF) or 48 per cent of leasing in Q3 2025, WITH 15 per cent quarter-over-quarter (q-o-q) growth.

High streets accounted for 52 per cent share, with 1.25 MSF leased, recording a 1.5 per cent increase q-o-q. 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, highlighting the need for fresh inventory. Mall rents, meanwhile, held steady on-quarter, while main streets registered a 1 per cent quarterly uptick, the report noted.

Domestic retailers accounted for 82.5 per cent of activity, showcasing the strength and expansion of home-grown brands, while international brands concentrated on mall openings.

Category-wise, fashion (21.4 per cent), food and beverage (F&B) (19.3 per cent) and entertainment (15.8 per cent) segments emerged as major demand drivers.

Mumbai, Delhi-NCR and Hyderabad accounted for nearly two-thirds of year-to-date leasing, with Mumbai alone contributing 24.5 per cent.

“India's retail sector continues its growth trajectory, driven by evolving consumer preferences and growing demand for quality retail spaces. Current supply constraints, while challenging in the near term, also underscore the sector’s underlying strength,” said Gautam Saraf, Executive Managing Director-Mumbai and New Business, Cushman & Wakefield.

The report projected a pipeline of approximately 3 million square feet in Q4 and 15.5 million square feet through 2027, which is expected to help rebalance supply and demand.

- –IANS

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