Pune’s Retail Leasing Sees 43% QoQ Growth: Cushman & Wakefield Report
Pune, 8th October 2025: Cushman & Wakefield, one of the largest and fastest growing real estate services firm in India today, released its Q3-2025 Retail Marketbeat Report, highlighting the continued strength of India’s retail sector. According to the report, Pune’s retail leasing activity totaled 0.33 million sq. ft., with malls contributing 85% (0.28 million sq. ft.) and high streets 15%. The city recorded a 43% QoQ and a remarkable 85% YoY surge in overall leasing, driven by strong demand across malls and main streets.
Departmental stores (28%), Fashion (24%), and Entertainment (23%) led leasing activity, primarily in suburban and peripheral areas (79% and 21%) such as Aundh, Nagar Road, Wakad, and Pimpri. Domestic brands dominated the quarter, accounting for 73% of total leasing. The strategic location of these areas near IT hubs, major arterial roads, and rapidly expanding residential zones continues to support retail growth.
Main streets saw ~49,000 sq. ft. of leasing—double QoQ, though 30% lower YoY—with activity concentrated in Balewadi, Baner, Bapodi, and Wanowrie. The Automotive (42%) and Fashion (30%) segments led demand.
Vacancy in Grade-A malls declined to 5.92% from 6.84% in Q2 2025, aided by healthy leasing and churn among existing retailers, amid no new mall supply. Main street rentals stayed stable QoQ but rose 14–15% YoY, with F.C. Road, Baner-Balewadi, and Pune Satara Road seeing 16–18% appreciation. Rentals in established hubs like Koregaon Park and Kothrud-Karve Road remained steady, while mall rentals were largely unchanged.
At the national level, India’s retail sector continued to demonstrate strength in Q3 2025 with gross leasing volume (GLV) reaching 2.41 million square feet (MSF) across the top 8 cities, according to Cushman & Wakefield’s Q3 Retail Market Beat Report. This represents a 7.6% quarter-on-quarter (q-o-q) increase.
Year-to-date (YTD) leasing volumes touched 7.02 MSF, reflecting a 25.2% y-o-y growth. At this pace, the sector is well-positioned to surpass the 2024 full-year GLV of 7.88 MSF, underscoring steady occupier demand and healthy momentum across both high streets and malls.
In Q3 2025, malls absorbed 1.16 MSF, accounting for 48% of total leasing, marking around 15% q-o-q growth. High streets accounted for 52% share, with 1.25 MSF leased, recording a 1.5% increase q-o-q.
Notably, this was the second straight quarter without any new Grade A mall completions, keeping YTD additions at 1.3 MSF. This supply constraint pushed vacancy levels down 91 bps q-o-q to 7.25% with Grade A+ malls dipping further by 45 bps to 2.27%, highlighting the need for fresh inventory.
Mall rents, meanwhile, held steady q-o-q, while main streets registered a 1% quarterly uptick.
Domestic retailers continued to dominate leasing activity with an 82.5% share, showcasing the strength and expansion of home-grown brands. International players accounted for 17.5%, focusing largely on malls to benefit from high-visibility and professional management.
Category-wise, fashion (21.4%), food & beverage (F&B) (19.3%) and entertainment (15.8%) segments emerged as major demand drivers.
At the city-level, Mumbai, Delhi NCR and Hyderabad led the activity in Q3. Mumbai posted a 24.5% share (0.6 MSF) while Hyderabad and Delhi NCR followed closely at 21% each (0.51 MSF). Together, these three markets captured nearly two-thirds of YTD leasing.
| Gross Leasing Volume (MSF) | Q2 2025 (MSF) | Q3 2025 (MSF) | Q3 2025 % share | QOQ (%) |
| Ahmedabad | 0.04 | 0.06 | 2.7% | 59.2% |
| Bengaluru | 0.18 | 0.18 | 7.3% | -1.4% |
| Chennai | 0.16 | 0.16 | 6.8% | 5.0% |
| Delhi NCR | 0.30 | 0.51 | 21.3% | 70.1% |
| Hyderabad | 0.76 | 0.51 | 21.2% | -32.9% |
| Kolkata | 0.05 | 0.06 | 2.5% | 24.1% |
| Mumbai | 0.52 | 0.59 | 24.5% | 13.1% |
| Pune | 0.23 | 0.33 | 13.8% | 43.0% |
| Total | 2.24 | 2.41 | 7.6% |
Gautam Saraf, Executive Managing Director – Mumbai & New Business, Cushman & Wakefield, said: “India’s retail sector continues its growth trajectory, driven by evolving consumer preferences and growing demand for quality retail spaces. The rising interest in fashion, F&B and entertainment categories points to a maturing consumer base with higher disposable incomes. This environment is encouraging domestic retailers to expand their footprint while attracting more international brands to India’s high-potential market.”
He added, “Current supply constraints, while challenging in the near term, also underscore the sector’s underlying strength. The pipeline of ~3 MSF in Q4 and ~15.5 MSF (Q4 25-2027) should help restore balance. Overall, we’re seeing a market whose fundamentals remain encouraging for sustained growth.”
City specific insight from the reports-
Ahmedabad: Ahmedabad recorded retail leasing volume of 0.06 in Q3 2025, reflecting 59% increase on q-o-q basis. Main streets dominated leasing activity with an 88% share of total lease volumes, and the malls contributed 12%.
Bengaluru: Bengaluru recorded retail leasing volumes of around ~0.18 MSF. With a share of nearly 89%, malls dominated retail leasing in the quarter. Mall lease volumes jumped by nearly 59% on a quarterly basis. With a share of 11%, main street lease volume was relatively lower compared to the previous quarters.
Chennai: Chennai’s retail market maintained healthy momentum in Q3, recording a leasing volume of ~0.16 MSF, an 8% y-o-y growth. Mainstreets dominated leasing activity with an 88% share, recording 0.14 MSF of leasing – up 29% over the previous quarter Malls recorded a leasing volume of 0.02 MSF.
Delhi/NCR: Retail leasing in Delhi NCR stood at ~0.5 MSF in Q3 2025 – an increase of 70% q-o-q and 88% y-o-y basis. Out of the 179,000 sq. ft. of leasing witnessed in malls, ~29,000 was fresh space take-up, while the rest were churn or renewals Main-street sites secured almost two-thirds of transaction volume in Q3-25.
Hyderabad: Retail leasing in Hyderabad rose to ~0.51 MSF in Q3 2025, up 3.5% y-o-y. YTD activity totaled 2.04 MSF, reflecting a 9.3% increase over the same period in 2024. High streets accounted for the bulk of leasing this quarter, given the limited availability of Grade A mall supply.
Kolkata: The city recorded retail leasing volumes of 0.06 MSF in Q3, a 24% growth on a quarterly basis. In absence of adequate space across the city’s Grade A malls, main streets continued to heavily dominate retail leasing activity with a share of around 98%.
Mumbai: Retail leasing activity in Q3 2025 reached 0.59 MSF, witnessing an increase of ~13% q-o-q and a significant growth of 2.7x y-o-y. Malls remained the preferred retail format, recording 0.49 MSF of leasing and representing a substantial 84% share of overall leasing activity. Mainstreet retail leasing accounted for 0.10 MSF during the quarter, representing about 16% of total leasing transactions.
