During January-March quarter, retailers leased 2.4 million sq ft across eight major cities, showing a 55% year-on-year growth and 6% quarter-on-quarter rise, as per Cushman & Wakefield data.
The growth was attributed to new supply in emerging locations, with contributions from both malls and mainstreets.
Hyderabad led the leasing activity with 34% (0.8 MSF) of total volume, demonstrating 106% year-on-year growth, according to an ET report.
The city’s leasing success extended beyond HITEC City and Jubilee Hills to emerging areas like Kothapet, Secunderabad, Boduppal and Kompally.
With 24% (0.58 MSF) of total leasing volume, Mumbai recorded 259% year-on-year growth, driven by new high street locations and additional mall space.
Delhi NCR secured 17% (0.41MSF) of leasing share with 57% year-on-year growth. The region attracted premium brands, dining and entertainment establishments, reflecting its strong consumer market.
Mainstreets dominated with 1.69 MSF, representing two-thirds of total leasing volume. Premium high streets in Delhi NCR, Mumbai, Bengaluru and Hyderabad attracted significant retailer interest.
Mall leasing reached 0.72 MSF during the quarter.
Entertainment and fashion sectors led mall occupancy with 34% share (0.35 MSF), whilst fashion and F&B dominated mainstreet leasing across top cities with 0.80 MSF volume.
Foreign brands comprised 8% of transactions, while domestic brands dominated with 92% of leasing activity, showcasing robust local retail expansion.
The forecast indicates mall leasing growth with 6.4 MSF new mall space expected across eight cities by 2025, with 58% being Grade A+.
“We are seeing a clear trend where retail demand is following new, quality supply—cities with fresh developments are witnessing heightened transaction volumes. Beyond traditional malls, new retail hubs are emerging within mixed-use developments, including office and residential complexes,” said Saurabh Shatdal, managing director, capital markets and head-retail, India.
