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Retail real estate leasing across India's top seven cities stood at approximately 4.3 million sq ft in the second half of 2025, reflecting stable occupier demand amid evolving market conditions, according to an Anarock report. High-street locations led leasing activity, supported by limited availability of quality mall space and continued retailer expansion. Mid-sized store formats between 1,000 sq ft and 5,000 sq ft dominated transactions, indicating a preference for flexible and cost-efficient retail footprints. Rental growth was observed in prominent high-street micro-markets, while mall rentals remained largely stable with selective increases in premium Grade A developments. Delhi-NCR and Hyderabad accounted for a significant share of upcoming supply, highlighting the concentration of new retail development in these regions.
Retail leasing activity across India's top seven cities reached approximately 4.3 million sq ft during the July-December period of 2025, according to an Anarock report released in the past week, with demand remaining steady despite changing market dynamics and evolving retailer strategies. Advertisement
The report indicated that high-street locations continued to attract a larger share of leasing activity compared to shopping malls, driven by limited availability of premium mall space and sustained expansion plans by domestic and international brands. Several key high-street micro-markets recorded rental appreciation during the period as occupiers increasingly prioritised visibility, accessibility, and consumer footfall in established urban corridors.
In contrast, mall leasing activity remained relatively stable, with rental growth restricted to select Grade A assets demonstrating strong occupancy and performance metrics. The constrained pipeline of high-quality mall supply in prime locations has contributed to this divergence between high-street and mall leasing trends.
Leasing activity during the second half of the year was largely driven by mid-sized retail formats, with store sizes ranging between 1,000 sq ft and 5,000 sq ft accounting for a significant share of transactions. This trend reflects retailer preference for scalable store formats that allow for cost optimisation while maintaining presence across multiple micro-markets.
The report also highlighted that the supply pipeline remains concentrated in a limited number of urban centres, with Delhi-NCR and Hyderabad together accounting for nearly 70% of the upcoming retail developments. This concentration underscores the continued dominance of these markets in terms of organised retail expansion and investor interest.
The steady leasing performance comes against the backdrop of broader structural shifts in India's retail sector, where occupiers are increasingly adopting an omni-channel approach, integrating physical retail presence with digital platforms. High-street locations have benefited from this transition, as brands seek to establish experience-driven stores that complement online sales channels.
In addition, evolving consumer preferences, particularly among younger demographics, have influenced store design and location strategy, with retailers focusing on experiential formats and curated offerings. This shift has supported demand for well-located retail spaces in established commercial corridors, even as e-commerce continues to expand.
The second half of 2025 reflects a phase of calibrated growth in India's retail real estate sector, with leasing volumes remaining stable rather than exhibiting sharp expansion. The combination of limited premium supply, selective rental growth, and continued occupier demand indicates a market adjusting to both supply constraints and changing consumption patterns.
Overall, the findings suggest that while retail leasing momentum has moderated compared to earlier growth phases, demand fundamentals remain intact, supported by retailer expansion strategies and the continued relevance of physical retail formats in urban India.
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