Retail leasing hits 8.9 mn sq ft in 2025, Hyderabad leads on Gen Z-focused formats
India's retail leasing across major cities reached 8.9 million sq ft in 2025, with Hyderabad emerging as the top market. Demand is being driven by Gen Z-focused retail formats, signaling a shift in mall and high-street tenant strategy.
What happened
retail-company · India's retail leasing across major cities reached 8.9 million sq ft in 2025, led by Hyderabad and driven by Gen Z-focused retail formats.
Key facts
- 8.9 million sq ft
- 2025
Why this matters
The Gen Z format shift and Hyderabad's emergence create M&A and partnership openings with retail concepts and mall operators positioned for younger demographics.
What to watch
- Quarterly net absorption vs new completions ratio in top metros
- Trophy-zone rent prints and renewal spreads from JLL/CBRE/Anarock reports
- Same-store sales density for Gen Z-oriented tenants
- New mall launch announcements in Hyderabad over next 2-3 quarters
- Shift in average lease tenor and lock-in clauses
- Map Grade-A mall pipeline and vacancy by micro-market in Hyderabad, Bengaluru, Mumbai to flag rent-growth runway vs supply risk
- Track anchor and digital-native brand store-opening announcements as leading indicator of sustained absorption
- Engage developers on lease structure shifts (revenue-share vs fixed rent) signaling tenant bargaining power
- Build comp set of listed mall REITs/operators to position on rent escalation narrative