India’s retail sector posted a robust performance in the first quarter of 2025, with total leasing activity reaching 2.4 million square feet (msf) across the top eight cities—a 55% year-on-year (YoY) surge and 6% growth quarter-on-quarter (QoQ), according to Cushman & Wakefield’s latest Retail Market Beat report. The leasing boom was led by Hyderabad, Mumbai, and Delhi NCR, which collectively accounted for 74% of the total volume. Hyderabad alone contributed 0.8 msf (34% of the total), recording a 106% YoY increase, largely driven by strong uptake in both established and emerging high street locations such as HITEC City, Jubilee Hills, Kothapet, and Kompally. Mumbai followed with 0.58 msf (24%), marking a staggering 259% YoY growth, supported by the launch of two Grade A malls—Oberoi Sky City in Borivali and Aurum Square in Ghansoli—adding 1.3 msf to the city’s retail inventory. Delhi NCR contributed 0.41 msf (17%), driven by high demand for premium retail, dining, and entertainment spaces, especially in Gurugram and Noida. Main streets remained the dominant retail leasing format, comprising 1.69 msf or two-thirds of the total leasing volume. Delhi NCR, Mumbai, Bengaluru, and Hyderabad were hotspots for high-street demand. Mall leasing stood at 0.72 msf, with Mumbai alone accounting for 44% of mall leasing. India’s Grade A mall inventory now totals nearly 63 msf. In terms of retail categories, Fashion and F&B continued to dominate leasing demand. In malls, Entertainment and Fashion together held a 34% share (0.35 msf), while in high streets, Fashion and F&B led with 0.80 msf leased. Domestic brands drove over 92% of transaction volumes, while foreign retailers accounted for around 8%, reflecting growing confidence in India’s consumption story. City-wise, Bengaluru and Chennai showed stable YoY growth with 0.19 msf and 0.17 msf leased, respectively. Pune also showed a sharp rise, with a 60% increase QoQ to 0.17 msf. Meanwhile, leasing in Ahmedabad and Kolkata remained muted. High street rentals continued to appreciate, with markets such as Jubilee Hills (Hyderabad), Colaba Causeway (Mumbai), Galleria Market (Gurugram), and Usman Road (Chennai) seeing increases ranging from 2% to 20% YoY. Mall rentals remained stable with modest quarterly gains in top-performing assets. Looking ahead, Cushman & Wakefield forecasts nearly 6.4 msf of new mall supply by the end of 2025 across the top cities, 58% of which will be premium Grade A+ assets. “The strong leasing activity in Q1 reflects growing market confidence,” said Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail, India, Cushman & Wakefield. “With close to 7 million square feet of new supply expected over the next three quarters—largely comprising premium Grade A malls—we expect this positive momentum to continue well into the year.”