Retail Leasing Dominates Ahmedabad's Prime Areas in Q1 2025
Retail leasing activity jumped to 50,000 SF in Q1 2025, marking a significant shift toward high-visibility commercial spaces. Main streets became the clear winners, capturing 87% of total leasing volume while malls played a secondary role with limited involvement. This trend underscores the growing preference for prime locations that offer guaranteed foot traffic.
Main Street Momentum: Key Sector Developments
Fashion retailers drive demand
- 53% of main street leasing was attributed to fashion brands, a triple increase quarter-over-quarter
- Accessories and lifestyle brands claimed 39% share, reflecting demand for diversified retail experiences
- Footwear brands contributed to remaining activity, though modestly
Strategic advantages of prime locations Main streets in Ahmedabad benefit from high pedestrian traffic and prominent visibility, essential for retail success. This focus aligns with national trends where consumer spending growth (3.6% in Q3 FY24–25) and controlled inflation (6.9% CPI) influence leasing priorities.
Mall Leasing Struggles Amid Shifting Preferences
Fashion exclusivity dominates mall activity
- 90% of mall leasing was concentrated in fashion segment
- Limited diversification compared to main streets
- No new supply added in Q1, contributing to stagnation
Comparative Market Breakdown
| Metric | Main Streets | Malls |
|---|---|---|
| Leasing Share (Q1) | 87% (50,000 SF) | 13% (6,500 SF approx) |
| Primary Tenants | Fashion (53%), Lifestyle (39%) | Fashion (90%) |
| Growth Drivers | High footfall, visibility | Limited tenant mix breadth |
Emerging Trends and Strategic Insights
Developer sentiment shifts
- Curated tenant mixes now prioritize experiential retail over traditional anchor stores
- Mixed-use developments combine residential, commercial, and recreational spaces
Economic headwinds persist
- GDP growth at 3.6% (Q3 FY24–25) and 6.9% inflation impact pricing strategies
- Retailers focus on cost-effective lease negotiations and targeted promotions
Expert Analysis
"We’re seeing retail demand follow new quality supply cities with fresh developments are witnessing heightened transactions." Saurabh Shatdal, Cushman & Wakefield
Conclusion
Ahmedabad’s Q1 2025 retail performance highlights three critical insights:
- Main streets remain king for high-value retail leases
- Fashion dominates but requires adjunct categories for sustainability
- Malls must evolve through tenant diversification and experiential designs
This market dynamic positions Ahmedabad as a prime destination for retailers seeking maximum visibility in India’s booming consumer economy.