Retail leasing in top seven Indian cities touch 4.3 million sq ft in H2 2025: Report

Retail real estate absorption across India’s top seven cities stood at around 4.3 million sq ft in the second half of 2025, reflecting steady leasing momentum despite a dynamic market environment, according to a report by Anarock.
High-street locations continued to outperform malls, supported by strong demand and limited availability of premium mall space. Several key high-street micro-markets recorded rental appreciation as brands increasingly turned to these locations for expansion.

In contrast, mall rentals remained largely stable, with selective growth seen in high-performing Grade A assets.

Mid-sized stores in the range of 1,000 to 5,000 sq ft dominated leasing activity, reflecting retailer preference for scalable and cost-efficient formats.

On the supply side, Delhi-NCR and Hyderabad together accounted for nearly 70% of the upcoming retail supply, highlighting concentration of new developments in these markets.

City-wise trends showed varying demand patterns, with NCR and Mumbai witnessing strong traction in apparel and entertainment-led leasing. Hyderabad and Bengaluru saw higher activity from anchor categories such as hypermarkets and family entertainment centres, while Chennai’s demand remained skewed towards discretionary segments like apparel and jewellery.

The report noted that constrained mall supply has pushed brands towards high streets to maintain market presence, particularly in segments such as fashion, luxury and food & beverage.