Chennai Retail Leasing Market Records Steady Growth in Q3 2025

Chennai’s retail real estate market continued its steady growth trajectory in the third quarter (Q3) of 2025, driven by strong leasing activity across major high-street locations and select mall spaces. According to data from Cushman & Wakefield’s Q3 2025 Retail Marketbeat Report, Chennai recorded a total leasing volume of around 1.6 lakh sq ft, marking an 8% rise compared to the same period last year.

High-street locations continued to dominate leasing activity, contributing nearly 88% of the total transactions, with demand surging in areas such as T. Nagar, Anna Nagar, East Coast Road (ECR), and Purasawalkam. These prime commercial streets collectively accounted for almost half of the city’s total retail space demand, reflecting growing consumer activity and brand expansion across key neighbourhoods.

Among sub-markets, the Off-CBD region led with a 29% share of leasing, followed by Suburban South with 25%. The demand was largely driven by the food and beverage (F&B) and lifestyle segments, which together captured nearly half of the total space taken up during the quarter.

Domestic brands maintained a dominant position with a 74% share, while international brands strengthened their presence, expanding to 26%, nearly double compared to last year. Notable deals during this period included Decathlon leasing 20,000 sq ft in Pondy Bazaar and StyleUp taking 12,000 sq ft along ECR, highlighting strong confidence in Chennai’s retail potential.

Mall leasing remained modest at 0.2 lakh sq ft, with the north-west sub-market contributing 58% of the activity, followed by the south-west zone at 23%. Despite limited new supply, Grade A malls recorded marginal rental growth, supported by sustained demand and low vacancy levels ranging between 1% and 2%.

Industry experts believe Chennai’s retail segment will continue to attract both domestic and global brands, supported by the city’s expanding urban infrastructure, rising disposable incomes, and strong consumption trends. Rental values are expected to appreciate further across leading high-streets in the coming quarters.