Prominent high streets such as T. Nagar, Anna Nagar, ECR, and Purasawalkam accounted for nearly half of total demand. The picture shows an aerial view of T. Nagar.
| Photo Credit: R. Ragu
Chennai’s retail market maintained a healthy momentum in the third quarter of 2025, recording a leasing volume of 0.16 million square feet, a year-on-year growth of 8%.
Main streets dominated leasing activity with an 88% share, recording 0.14 million square feet of leasing — up by 29% over the previous quarter, according to data shared by Cushman & Wakefield, a real estate services firm, as part of its Q3-2025 Retail Marketbeat Report.
The Off-CBD (Central Business District) sub-market led leasing activity with a 29% share, followed by Suburban South (25%). Prominent high streets such as T. Nagar, Anna Nagar, ECR, and Purasawalkam accounted for nearly half of the total demand.
Sector-wise, the food and beverages (F&B) segment led with a 24% share, followed by accessories and lifestyle, at 22%. Domestic brands continued to dominate leasing activity in Q3 with a 74% share, while international brands strengthened their presence, capturing 26% — double their share when compared to the same period in 2024.
During the quarter, Decathlon leased 20,000 sq.ft at Pondy Bazaar, and StyleUp took 12,000 sq.ft space on the East Coast Road. Malls recorded a leasing volume of 0.02 million sq.ft in Q3, with the north-west sub-market accounting for 58% of the activity, followed by south-west at 23%.
In this particular quarter, demand was led by F&B, Fashion and CDIT brands. The overall mall vacancy declined marginally by 20 bps to 13.36%. Superior-grade malls continued to record high occupancy levels, with vacancy remaining tight, at 1%-2%.
The report also pointed out that Grade A malls recorded a modest rental increase during the third quarter, driven by limited space availability and steady demand. Among main streets, locations such as Anna Nagar 2nd Avenue, Pondy Bazaar, Usman Road (South), Velachery, and Ambattur (MTH Road) recorded a quarterly rental growth in the range of 3%-10%. Rental appreciation is expected in key main streets over the coming quarters, driven by sustained demand from domestic brands.
Published – October 13, 2025 06:31 am IST