Indias retail focus returns to malls as high street leasing falls 26% in Q2 2025
New Delhi [India]27 July (Memorial): India’s retail sector, the renting of high streets in the second quarter of 2025 witnessed the decrease of 26 percent of the quarter decrease in the shopping malls again.
According to Cushman & Wakefield Malls’ latest report, 45 percent of the rental volume in the quarter (1.01 MSF) – 42 percent of the QOQ increase and the highest shopping center share in the last five quarter points to increasing interest in experience -oriented, configured retail formats.
However, even after witnessing a decrease in rental activities, the high streets continued to dominate with 55 percent (1.23 MSF) of the market and underlined the permanent inadequacy of the quality shopping center stock among cities.
According to the ‘Q2-2025 Retail Market Beat Report, the new shopping center supply was not added in the second quarter, and for H1 2025, the A-class shopping center completion was 1.3 million feet square. As a result, the shopping center gap levels fell to 8.16 percent in the second quarter, and premium A or superior shopping centers witnessed only 4.28 percent tight gaps.
This emphasizes the increasing demand for premium retail assets and strengthens the leverage of the host in the main sites.
Meanwhile, the average mainstreet rents remained constant on QOQ basis, while a 6 percent increase in a 6 percent increase.
Suvishshesh Valsan, Head, Research India at Cushman & Wakefield Said, “High Streets Remained the Dominant Driver of Activity, Who Vacance Levels in Grade -A Malls Have Tighted Furter – Reflecting A Clear and Growing Preferred high-ranking.
The increasing interest of international brands and both of them stated that there was a sharp increase between categories such as healthy life and grocery stores, which pointed to a wider change in India’s consumption environment.
According to the report, domestic retailers continued to take a dominant position in the rental volume with 86 percent share (1.93 MSF).
The quarter also witnessed significant purchases in international retailer participation, which increased from 8.5 percent to 0.31 MSF to 14 percent in the previous quarter.
This growth was largely directed by shopping centers that remain preferred for global brands looking for brand visibility and curatoric customer experiences.
In terms of cities, Haydarabad, Mumbai and Delhi-NCR appeared as the most performance markets, and in this quarter, more than 70 percent of the total rental activity records 0.76 MSF, 0.52 MSF and 0.3 msf rental volumes. They followed them Pune (0.23 MSF), Bengaluru (0.18 MSF), Chennai (0.16 MSF), Kolkata (0.05 MSF) and Ahmedabad (0.04 MSF). (MOMENT)
