India's Retail Listing to Hit Post-Pandemic High of ~9 MSF in 2025 on Fresh Mall Supply: Cushman & Wakefield Report

India’s retail real estate market is set to post its strongest leasing performance since the pandemic, with annual absorption expected to touch nearly 9 million square feet (MSF) in 2025, up from about 7.8 MSF last year, according to India Outlook 2026 report.

The surge is being driven by a late-year rebound in mall-led leasing as new Grade A supply becomes operational in the December quarter. Limited availability of quality malls had constrained retailer expansion over the past two years, pushing brands towards high-street locations. With fresh completions entering the market, delayed leasing decisions are now translating into transactions, helping malls claw back market share.

Fashion, food and beverage, and entertainment continue to anchor demand, reflecting a shift towards experience-led retail formats. While high streets remain active, especially in established corridors, the easing of supply constraints in malls is emerging as the key driver of incremental absorption.

Also Read: Mumbai Real Estate Investments Cross US$ 1.2 Billion in 2025, Regain Pre-Pandemic Momentum: Cushman & Wakefield | Republic World

Supply conditions have improved markedly in 2025. After Grade A mall completions were restricted to just 0.9 MSF in 2024, new deliveries this year are projected at around 4.3 MSF, largely concentrated in the final quarter. Although this does not fully offset the cumulative shortage built up over recent years, it has been sufficient to unlock pent-up demand and support higher leasing volumes.

Looking ahead, retail leasing momentum is expected to strengthen further in 2026, with demand projected at 10–11 MSF. The upcoming mall pipeline stands at about 5.9 MSF, of which nearly 76% is expected to be Grade A+ assets. Cities such as Bengaluru, Chennai, Mumbai and Hyderabad are likely to see the bulk of these completions.

While average rents may stabilise in markets with heavy supply additions, top-grade malls and dominant high-street locations are expected to retain pricing power. The report also points to growing premiumization, supported by global brand entries, platform-led partnerships and selective mall development in Tier II cities, signalling deeper confidence in India’s consumption-led growth.