Leasing activity across premium malls and high streets accelerated sharply in 2025, signalling renewed strength in the Mumbai retail market as international brands deepen their presence in India’s commercial capital. The surge underscores the city’s evolving role as a gateway for global retail expansion and organised consumption growth.
According to new data released by a global property consultancy, prime retail leasing in Mumbai rose by more than 80% year-on-year in 2025. Net absorption touched nearly 0.9 million sq ft, supported largely by the completion of new mall supply earlier in the year. Although the final quarter recorded a sequential slowdown in leasing volumes, the annual figures reflect sustained occupier confidence. Suburban micro-markets led activity in the final quarter, driven by store openings in entertainment, apparel and lifestyle categories. Retailers expanded within operational malls that offer established footfalls, transit connectivity and integrated mixed-use ecosystems factors increasingly central to long-term retail viability. At the close of 2025, total organised mall inventory stood at approximately 15.5 million sq ft, with no fresh completions in the final quarter. Even without additional supply, occupancy levels improved. Vacancy in prime centres tightened both sequentially and annually, pointing to a healthier supply-demand balance in the Mumbai retail market.
Rental values firmed through the year, posting steady quarterly growth and double-digit annual appreciation across key submarkets. Northern prime clusters led rental gains, reflecting strong catchment incomes and infrastructure upgrades that have enhanced accessibility. Analysts also reported mild yield compression for institutional-grade retail assets, signalling sustained investor appetite for stabilised, income-generating properties. Industry experts attribute the performance to three converging factors: rising discretionary spending among urban households, expanding international retailer footprints, and improved mall design standards. Over the past decade, Mumbai’s organised retail has shifted toward experiential formats, blending entertainment, dining and leisure to increase dwell time and reduce vacancy risk. Urban economists note that while retail expansion strengthens employment and municipal revenues, future growth must align with transport planning and energy-efficient design. High-footfall retail districts can significantly influence traffic patterns, energy consumption and local air quality. Integrating transit access, pedestrian infrastructure and green building standards will be critical as the Mumbai retail market scales further. Looking ahead, consultants expect occupier demand to remain stable, supported by new brand entries and store upgrades in existing malls. However, developers are likely to remain cautious on fresh supply, focusing instead on optimising performance within operational assets.
For Mumbai, the latest retail cycle reflects more than leasing momentum. It highlights the city’s transition toward a mature, consumption-driven urban economy one where quality assets, strategic location and sustainability considerations increasingly define long-term competitiveness.
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