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Retail leasing in Delhi-NCR surged 57% year-on-year in Q1 2025, led by high street locations like Connaught Place, Khan Market, and Galleria Market, according to Cushman & Wakefield. High streets contributed 61% of the leasing, with Connaught Place rents rising 14% to INR 1,150-1,250 per sq ft and Khan Market climbing 7% to INR 1,600-1,650. Galleria Market posted the highest growth at 20%. While Gurugram dominated leasing at 52%, mall leasing fell 12% as brands shifted focus to high-visibility streets. Fashion and F&B led demand, each accounting for 24% of activity. Nationally, Q1 retail leasing hit 2.4 million sq ft, with Hyderabad leading growth.
Retail activity in Delhi-NCR saw strong growth in early 2025, with main street rentals rising sharply in key markets like Connaught Place, Khan Market, and Galleria Market, according to a report by real estate consultancy Cushman & Wakefield. Demand from fashion, food, and entertainment brands drove a 57% rise in leasing of retail space in malls and high streets combined. Advertisement
High streets led the charge, contributing 61% of all leasing activity in the January-March quarter. Monthly rentals at Connaught Place rose by 14% year-on-year to INR 1,150-1,250 per sq ft, while Khan Market - one of the costliest retail locations in India - saw rents increase by 7% to INR 1,600-1,650 per sq ft.
Among Delhi-NCR-s high streets, Galleria Market in Gurugram posted the biggest annual rental growth at 20%, followed by Sector 29 Gurugram (12-15%). In contrast, rents in South Extension and Rajouri Garden remained stable. Leasing in Gurugram accounted for more than half of the region's activity, with Noida at 40% and Delhi NCT at just 8%.
While high street leasing nearly tripled compared to the same period last year, mall leasing declined by 12%, as retailers shifted focus to prime high street locations for better visibility and footfall.
The food & beverage (F&B) and fashion segments were the most active, each accounting for 24% of leasing. F&B saw the biggest growth, with space take-up doubling year-on-year. Entertainment (18%) and department stores (11%) also saw steady activity, indicating a broad mix of retail demand.
Vacancy in malls dropped slightly to 12.1%, with superior Grade A malls maintaining tight vacancy at around 3%. However, non-premium malls continued to face challenges, with vacancy levels hovering around 20%.
Across India's top eight cities, retail leasing crossed 2.4 million sq ft in Q1 2025. Hyderabad led the pack with 34% of the national leasing volume and a massive 106% year-on-year growth, driven by new retail developments. Cities with fresh supply, especially within mixed-use projects, saw the most traction.
As India's retail sector evolves, high streets are proving to be just as important as malls, with prime locations witnessing robust rental growth and renewed interest from major brands.
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