India’s retail real estate sector maintained its growth momentum in Q3 2025, with gross leasing volume (GLV) rising to 2.41 million sq. ft., up 7.6% quarter-on-quarter, according to Cushman & Wakefield’s Q3 Retail Market Beat Report.

The first nine months of 2025 saw 7.02 million sq. ft. of leasing, marking a 25.2% year-on-year growth, putting the sector on track to surpass the 2024 full-year total of 7.88 million sq. ft. Robust occupier demand across both high streets and malls, coupled with limited new supply, continued to drive market activity and keep vacancy levels at a multi-quarter low.

In Q3 2025, malls absorbed 1.16 MSF, accounting for 48% of total leasing, marking around 15% q-o-q growth. High streets accounted for 52% share, with 1.25 MSF leased, recording a 1.5% 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 q-o-q to 7.25% with Grade A+ malls dipping further by 45 bps to 2.27%, highlighting the need for fresh inventory.  Mall rents, meanwhile, held steady q-o-q, while main streets registered a 1% quarterly uptick.

Domestic retailers continued to dominate leasing activity with an 82.5% share, showcasing the strength and expansion of home-grown brands. International players accounted for 17.5%, focusing largely on malls to benefit from high-visibility and professional management. Category-wise, fashion (21.4%), food & beverage (F&B) (19.3%) and entertainment (15.8%) segments emerged as major demand drivers.

At the city-level, Mumbai, Delhi NCR and Hyderabad led the activity in Q3. Mumbai posted a 24.5% share (0.6 MSF) while Hyderabad and Delhi NCR followed closely at 21% each (0.51 MSF). Together, these three markets captured nearly two-thirds of YTD leasing.

Gautam Saraf, Executive Managing Director – Mumbai & New Business, Cushman & Wakefield, said: “India’s retail sector continues its growth trajectory, driven by evolving consumer preferences and growing demand for quality retail spaces. The rising interest in fashion, F&B and entertainment categories points to a maturing consumer base with higher disposable incomes. This environment is encouraging domestic retailers to expand their footprint while attracting more international brands to India’s high-potential market.” 

He added, “Current supply constraints, while challenging in the near term, also underscore the sector’s underlying strength. The pipeline of ~3 MSF in Q4 and ~15.5 MSF (Q4 25-2027) should help restore balance. Overall, we’re seeing a market whose fundamentals remain encouraging for sustained growth.”

City specific insight

Ahmedabad: Ahmedabad recorded retail leasing volume of 0.06 in Q3 2025, reflecting 59% increase on q-o-q basis. Main streets dominated leasing activity with an 88% share of total lease volumes, and the malls contributed 12%. 

Bengaluru: Bengaluru recorded retail leasing volumes of around ~0.18 MSF. With a share of nearly 89%, malls dominated retail leasing in the quarter. Mall lease volumes jumped by nearly 59% on a quarterly basis. With a share of 11%, main street lease volume was relatively lower compared to the previous quarters. 

Chennai: Chennai’s retail market maintained healthy momentum in Q3, recording a leasing volume of ~0.16 MSF, an 8% y-o-y growth. Mainstreets dominated leasing activity with an 88% share, recording 0.14 MSF of leasing – up 29% over the previous quarter Malls recorded a leasing volume of 0.02 MSF. 

Delhi/NCR: Retail leasing in Delhi NCR stood at ~0.5 MSF in Q3 2025 – an increase of 70% q-o-q and 88% y-o-y basis. Out of the 179,000 sq. ft. of leasing witnessed in malls, ~29,000 was fresh space take-up, while the rest were churn or renewals Main-street sites secured almost two-thirds of transaction volume in Q3-25. 

Hyderabad: Retail leasing in Hyderabad rose to ~0.51 MSF in Q3 2025, up 3.5% y-o-y. YTD activity totaled 2.04 MSF, reflecting a 9.3% increase over the same period in 2024. High streets accounted for the bulk of leasing this quarter, given the limited availability of Grade A mall supply. 

Kolkata: The city recorded retail leasing volumes of 0.06 MSF in Q3, a 24% growth on a quarterly basis. In absence of adequate space across the city’s Grade A malls, main streets continued to heavily dominate retail leasing activity with a share of around 98%. 

Mumbai: Retail leasing activity in Q3 2025 reached 0.59 MSF, witnessing an increase of ~13% q-o-q and a significant growth of 2.7x y-o-y. Malls remained the preferred retail format, recording 0.49 MSF of leasing and representing a substantial 84% share of overall leasing activity. Mainstreet retail leasing accounted for 0.10 MSF during the quarter, representing about 16% of total leasing transactions.

Pune: In Q3 2025, retail leasing activity totaled ~0.33 MSF, with malls accounting for 85% of this at 0.28 MSF and the remaining 15% contributed by high streets. The city saw a 43% q-o-q increase in overall retail leasing and a remarkable 85% rise y-o-y.