India's mall leasing drops 38% in Q3 as premium space tightens

Data from Cushman & Wakefield shows that retail leasing in shopping malls across Mumbai, Delhi-NCR, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad dropped 38% to 0.71 million square feet in the July-September quarter. High-street retail, however, expanded by 33% to 1.51 million square feet, making up 68% of total leasing activity. Combined, total retail leasing fell almost 5% to 2.22 million square feet versus the same period a year earlier.

The contraction is linked to a shortage of premium mall space, with Grade A mall vacancy now under 5%. Gautam Saraf said the market still shows steady occupier interest despite the supply gap, and highlighted a 12.7 million-square-foot pipeline expected by 2028. Shriram PM Monga added that retailers are shifting to high streets when quality mall space is scarce, and that both formats will coexist rather than compete.