India’s retail sector has shifted its focus to malls once more as leasing of excessive streets witnessed a 26 per cent quarter-on-quarter decline within the second quarter of 2025.
In keeping with the newest report by Cushman & Wakefield Malls accounted for 45 per cent of leasing quantity in Q2 (1.01 MSF) – a 42 per cent q-o-q rise, and the very best mall share previously 5 quarters, signaling rising curiosity in experience-driven, structured retail codecs.
Nonetheless, even after witnessing a dip within the leasing actions, excessive streets continued to dominate with 55 per cent (1.23 MSF) of the market, underscoring the persistent undersupply of high quality mall inventory throughout cities.
In keeping with the ‘Q2-2025 Retail Market Beat Report’, no new mall provide was added in Q2, and Grade A mall completions for H1 2025 stood at 1.3 million sq. ft. Because of this, mall emptiness ranges dropped by round 77 foundation factors to eight.16 per cent in Q2 2025, with premium Grade-A+ or superior malls witnessing even tighter vacancies at simply 4.28 per cent.
This highlights the rising demand for premium retail belongings and additional strengthens landlord leverage in prime places.
In the meantime, common mainstreet rents remained secure on a q-o-q foundation, whereas recording a wholesome 6 per cent y-o-y rise.
Suvishesh Valsan, Head, Analysis India at Cushman & Wakefield mentioned, “Excessive streets remained the dominant driver of exercise, whereas emptiness ranges in Grade-A malls have tightened additional – reflecting a transparent and rising desire for high-quality and experience-led retail areas. Wanting forward, we stay optimistic. Almost 4 MSF of recent Grade A provide is predicted within the second half of the yr, significantly throughout key metros similar to Mumbai, Delhi-NCR, and Hyderabad”
He acknowledged that the rising curiosity from worldwide manufacturers and the sharp uptick in leasing throughout classes like wellness and grocery — each of which sign a broader shift in India’s consumption panorama.
As per the report, the home retailers continued to take care of a dominant place in leasing quantity with 86 per cent share (1.93 MSF).
The quarter additionally witnessed a notable uptake in worldwide retailer participation, whose share rose to 14 per cent with 0.31 MSF of leasing exercise, up from 8.5 per cent within the earlier quarter.
This progress was largely pushed by malls, which stay the popular format for international manufacturers looking for structured environments, model visibility, and curated buyer experiences.
By way of cities, Hyderabad, Mumbai and Delhi-NCR emerged because the top-performing markets, recording leasing volumes of 0.76 MSF, 0.52 MSF and 0.3 MSF respectively- collectively accounting for over 70 per cent of the whole leasing exercise within the quarter. They have been adopted by Pune (0.23 MSF), Bengaluru (0.18 MSF), Chennai (0.16 MSF), Kolkata (0.05 MSF) and Ahmedabad (0.04 MSF).
