India's Retail Real Estate Boom: High Leasing Demand and Supply Expansion

Leasing of retail spaces across major Indian cities is expected to reach nearly 9 million sq ft in 2025, marking the highest activity since the pandemic. Factors such as increased consumer spending, new mall supplies, and premiumisation trends drive this surge, according to Cushman & Wakefield.

India's retail real estate market is poised for a significant surge, with leasing activity set to reach nearly 9 million square feet in 2025. According to data from Cushman & Wakefield, this marks a 15% increase from the previous year, driven by robust demand and new mall supply coming online in the fourth quarter.

The consultancy highlights a broader trend of premiumisation within the retail space, with malls transforming into lifestyle destinations. Executive Managing Director, Gautam Saraf, emphasizes a shift towards experience-led retail, aligning with consumer demand for curated formats and premium brands.

Industry experts, including S K Sayal of Bharti Real Estate and Ashish Sharma of Brahma Group, underscore the importance of urban infrastructure and consumer confidence in sustaining this momentum. Looking ahead, leasing activity is expected to intensify, particularly in tier-2 cities, with projections reaching 10-11 million sq ft by 2026.

(With inputs from agencies.)