Pune, 8th April 2025 – Cushman & Wakefield, one of the largest and fastest growing real estate services firm in India today, released its Q1-2025 Retail Market Beat Report, highlighting the continued strength of India’s retail sector. According to the report, Pune’s retail real estate market witnessed a significant surge in Q1 2025, recording a 60% quarter-on-quarter (Q-o-Q) increase in leasing volume, reaching 0.17 million square feet (msf). The city’s mall leasing activity saw a remarkable two-fold rise from Q4 2024, with malls contributing 0.11 msf, ing for 66% of total leasing. Suburban locations such as Solapur Road, Hadapsar, and Nagar Road were the primary drivers of leasing activity, capturing 50% of mall transactions. The fashion segment led the demand with a 25% share, followed by entertainment (17%) and departmental stores (15%).

Pune’s main streets also saw an impressive 17% Q-o-Q growth in leasing activity, with 57,630 sq. ft. leased. Peripheral locations like Akurdi and Pimpri-Chinchwad contributed to 63% of the total main street leasing. The entertainment category was the key driver, holding a 56% share, while wellness and footwear ed for 9% and 4%, respectively. Main street rentals experienced a 6-7% Q-o-Q rise, with high streets such as F.C. Road, Aundh, Bund Garden Road, and Baner-Balewadi seeing strong rental appreciation. Superior Grade malls also recorded an 8-9% Q-o-Q rental increase. Despite this leasing momentum, mall vacancy rates remained stable at 7.1%, with malls maintaining even tighter vacancies at 5-6%.

At a national level, the Indian retail sector recorded leasing activity crossing 2.4 Million Square Feet (MSF) in the first quarter of the year across the top 8 cities. This is a robust 55% year-on-year (yoy) growth and a 6% quarter-on-quarter (qoq) increase. Both Malls and Mainstreets contributed to this growth owing to the commencement of new supply in emerging locations.

The report highlighted that Hyderabad was the frontrunner in of leasing volume, contributing 34% (0.8 MSF) of the total leasing activity, with a staggering 106% yoy growth. Mumbai followed closely, ing for 24% (0.58 MSF) of the total leasing volume and recorded a 259% yoy growth, largely owing to the emergence of new high street locations and the addition of new mall supply. Delhi NCR also saw significant traction, capturing 17% (0.41 MSF) of the total leasing share, ed by strong demand in key submarkets and a 57% yoy increase. Retail activity here was largely led by brands, dining and entertainment concepts, reinforcing its status as a high consumption market.

Saurabh Shatdal, Managing Director, Capital Markets and Head-Retail, India said, “India’s retail sector is evolving at a dynamic pace, and the strong leasing activity in Q1 2025 reflects growing market confidence. We’re seeing a clear trend where retail demand is following new, quality supply—cities with fresh developments are witnessing heightened transaction volumes. Beyond traditional malls, new retail hubs are emerging within mixed-use developments, including office and residential complexes. With close to 7 million square feet of new supply expected over the next three quarters—largely comprising Grade A malls—we expect this positive momentum to continue well into the year.”