New Delhi, Dec 23 India’s retail real estate market is set to end 2025 with 9 million square feet of leasing, up from 7.8 million square feet in 2024, the highest annual absorption since the pandemic, a report said on Tuesday.
The report from Cushman & Wakefield said that retail leasing momentum will further strengthen in 2026, with total demand expected at about 10–11 million square feet, driven by improved availability of quality mall space and release of pent‑up demand constrained by limited supply.
The mall pipeline for 2026 stands at around 5.9 million square feet, with roughly 76 per cent expected to be Grade A+ assets, which should expand choice for retailers in Bengaluru, Chennai, Mumbai and Hyderabad.
This fresh supply is expected to ease extreme tightness in vacancies and enable a healthier phase of growth led by expansion rather than space constraints, the firm said.
High‑street leasing, which gained share during mall scarcity, is expected to remain steady in 2026 even as mall absorption improves.
“The sharp uptick in 2025 underscores the catalytic role of fresh completions in unlocking pent-up demand and pushing absorption to record levels. With a robust pipeline lined up for 2026, the market is now entering a phase of meaningful capacity addition focused on higher-quality retail formats,” said Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & Wakefield.
The report said that new deliveries in 2025 are projected to close at around 4.3 million square feet, up from 0.9 million square feet of Grade A mall completions in 2024, driven by completions in the last quarter, easing scarcity, though not fully bridging the gap created over the past two years.
Fashion, food and beverage and entertainment remained the primary demand drivers in 2025.
The report also highlighted that premiumisation is expected to strengthen in 2026, supported by a broader pipeline of global brand rollouts, platform partnerships, and supply of high-quality malls.
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