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India Commercial Real Estate Caps 2025 With Record Retail and Office Leasing

Reports cite fresh Grade A mall supply plus GCC expansion as the key drivers, with momentum projected to extend into 2026.

Overview

  • Retail leasing is set to close 2025 at about 9 million sq ft, up from 7.8 million in 2024, as new Grade A mall completions of roughly 4.3 million sq ft unlocked pent‑up demand led by fashion, F&B and entertainment.
  • Cushman & Wakefield projects retail demand of 10–11 million sq ft in 2026 on a mall pipeline of around 5.9 million sq ft, with about 76% expected to be Grade A+, concentrated in Bengaluru, Chennai, Mumbai and Hyderabad.
  • Grade A office leasing reached approximately 71.5 million sq ft in 2025, a 6% annual rise, with a record 20.6 million sq ft in Q4, Bengaluru leading at 22.1 million sq ft and flex operators taking 13 million sq ft, or about 18% of demand.
  • Net office absorption across the top seven cities hit a record 55.16 million sq ft, up 10% year on year, as GCCs accounted for a record 41% share of gross leasing, vacancies eased to 16.1% and average rents rose 6% to about ₹92 per sq ft.
  • Industrial and logistics leasing also set a new high at 76.5 million sq ft, with DelhiNCR leading activity and manufacturing, third‑party logistics and e‑commerce as the top occupiers, according to Savills.