High street leasing in India declines by 26% Q-o-Q in Q2, FY25: Cushman & Wakefield
28 July 2025, Mumbai
India's retail landscape is undergoing a notable shift with a renewed focus on malls as high street leasing experienced a significant 26 per cent Q-o-Q decline in Q2, FY25. This trend highlights the growing consumer preference for structured, experience-driven retail environments.
According to the latest ‘Q2-2025 Retail Market Beat Report’ by Cushman & Wakefield, malls accounted for 45 per cent of total leasing volume in Q2, reaching 1.01 million sq ft. This represents a substantial 42 per cent Q-o-Q rise and marks the highest mall share in the past five quarters. The data signals a clear and increasing interest in shopping centers that offer more than just transactional retail, leaning towards spaces that provide comprehensive consumer experiences.
Despite this surge in mall activity, high streets continued to hold the largest share of the market, accounting for 55 per cent of leasing volume. However, their quarter-on-quarter dip underscores a persistent challenge in the Indian retail sector: the undersupply of high-quality mall inventory across major cities.
The report further reveals, no new mall supply was added in Q2, 2025, contributing to tighter market conditions. Grade A mall completions for H1, FY25 stood at a modest 1.3 million sq ft. Consequently, mall vacancy levels declined by 77 basis points to 8.16 per cent in Q2 2025. Premium Grade-A+ or superior malls experienced even tighter vacancies, plummeting to just 4.28 per cent.
This tightening of vacancies, particularly in premium mall categories, indicates robust demand for high-quality retail assets. It also significantly strengthens the negotiating power of landlords in prime locations, reflecting a competitive market for desirable retail spaces. As consumer preferences continue to evolve, the demand for well-managed, experience-rich mall environments is expected to intensify.
