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Retail space leasing across India's top eight cities is projected to rise by about 15 per cent this year to nearly 9 million sq ft, supported by fresh supply and sustained retailer demand, according to Cushman & Wakefield. Both high-street locations and shopping malls have witnessed higher absorption, with malls seeing a sharper jump. The consultant expects this to be the strongest annual retail leasing since the Covid-led slowdown, aided by new mall completions, growing consumer confidence, and the shift towards experience-led retail formats across key urban markets.
Retail space leasing across India's eight major cities is expected to increase sharply this year, reaching close to 9 million sq ft, as higher supply meets continued demand from retailers, as per data released by Cushman & Wakefield. The consultant noted that leasing activity stood at 7.8 million sq ft in the previous year, indicating a strong year-on-year rise. Advertisement
The data covers Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Pune, Hyderabad and Ahmedabad. Leasing activity in high-street locations across these markets is estimated to rise marginally to around 5.4 million sq ft compared to about 5.3 million sq ft recorded earlier. In contrast, shopping malls have seen a more pronounced increase, with demand rising to nearly 3.8 million sq ft from about 2.5 million sq ft in the prior year.
Cushman & Wakefield pointed out that the current year is likely to record the highest annual retail space absorption since the Covid disruption in 2020. The consultant attributed this performance to a strong surge towards the end of the year, supported by new mall supply becoming operational during the October-December quarter.
Gautam Saraf, Executive Managing Director, Mumbai & New Business at Cushman & Wakefield, indicated that the strong leasing momentum reflects the return of confidence in organised retail. He also highlighted that the upcoming period is expected to see continued supply additions, aligned with a clear shift towards premium and experience-focused retail. According to him, malls are increasingly positioning themselves as lifestyle destinations rather than purely transactional spaces.
The consultant added that after a constrained phase when Grade A mall completions were limited to about 0.9 million sq ft, new retail deliveries this year are projected to reach around 4.3 million sq ft. This increase in supply has helped ease earlier shortages, especially in established urban markets.
Industry participants echoed similar views. S K Sayal, MD and CEO of Bharti Real Estate, linked the strong demand for retail space to improving consumer sentiment, changing lifestyles and the growing popularity of experience-led formats. He noted that Delhi-NCR, in particular, is seeing rising interest in mixed-use developments that combine retail, food and beverage, entertainment and workspaces within a single destination. He also stressed that better infrastructure and connectivity continue to enhance the attractiveness of organised retail locations.
Ashish Sharma, AVP Operations at Brahma Group, said the trend reflects strengthening consumption-led growth in India. He added that Delhi-NCR is likely to remain a major contributor, supported by interest from both domestic and global brands, improved infrastructure and rising spending across organised retail formats.
Shriram PM Monga, Co-Founder of SRED Real Estate Advisory, observed that retail leasing momentum has remained steady, led by fashion, food and beverage, and digitally native brands expanding their physical presence. He noted that this demand is unfolding amid limited Grade A mall supply and a renewed preference for high-visibility high-street locations.
Looking ahead, Monga said leasing activity is expected to pick up further in 2026, particularly across tier-2 cities. Cushman & Wakefield has projected that retail space demand could rise to around 10-11 million sq ft in 2026, indicating continued depth in India's retail real estate market.
Source PTI
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