The city’s retail real estate market recorded a substantial 31 per cent year-on-year growth in leasing activity during the first quarter of 2025, totaling 0.17 million square feet, according to a recent market report. This surge was primarily driven by the fashion segment, which accounted for 37 per cent of total leasing—nearly four times higher than the same period last year.

High Streets Dominate Leasing Activity

High street locations were the core contributors to this growth, making up over 90 per cent of total leasing. The north-western parts of the city led with a 38 per cent share, followed closely by the off-central regions at 37 per cent.

Limited Mall Leasing Due to Supply Constraints

In contrast, mall leasing remained limited, with only 10,000 square feet transacted during the quarter. This was mainly due to insufficient availability of high-quality mall spaces. As a result, the overall mall vacancy rate dipped slightly by 14 basis points quarter-on-quarter to 14.13 per cent, while top-grade malls continued to maintain extremely low vacancy levels of one to two per cent.

Rental Appreciation in Key Retail Corridors

Several high-demand high-street corridors saw rentals increase by three to four per cent quarter-on-quarter. Areas across the city’s major shopping streets and arterial retail corridors experienced noticeable rental appreciation.

National Retail Leasing Trends

Nationally, one southern metro led in leasing volume, contributing 34 per cent (0.8 million square feet) of total activity, with a 106 per cent year-on-year surge. Another western metro followed with a 24 per cent share (0.58 million square feet), posting a 259 per cent year-on-year increase driven by expanding high-street hubs and new mall supply. The national capital region accounted for 17 per cent (0.41 million square feet) of total leasing, supported by strong demand across key submarkets and a 57 per cent year-on-year rise.

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