Retail leasing activity jumps ~82% y-o-y

• While leasing was down 24% q-o-q in Q4, 2025 was marked by robust activity across malls and high streets with annual numbers showing a remarkable ~82% y-o-y jump. There was increasing traction from international retailers across the luxury, fashion and beauty segments.
• Net absorption was 0.9 mn sq ft in 2025, driven by the new mall completions in earlier in the year. Suburbs dominated the leasing share during the quarter. Prominent store openings included those by Game Palacio, Louis Phillipe, Jus Jumpin across prominent malls.

No mall completions in Q4 2025

• While the Skycity Mall and Aurum Square Mall became operational in Q1 in the Suburbs submarket, no other mall openings were recorded in the remainder of the year. Mall stock remained at 15.5 mn sq ft as of Q4 2025.
• Strong leasing activity across premium, operational malls ensured that vacancy dropped ~30 bps q-o-q and a strong 230 bps on a y-o-y basis.

Rents show moderate growth q-o-q

• Rents rose q-o-q at a moderate pace of 1.6% on an overall basis. The quarter’s performance was the final push which resulted in an 11% y-o-y growth in rents in 2025, demonstrating consistent, year-long momentum in the market.
• Rents were driven by growth in the Prime North submarket which saw the fastest growth among all submarkets. Demand for quality retail assets from large investors remained intact and yields were down by 20 bps y-o-y.

Outlook: Retail market demand to sustain driven by support from global and domestic retailers across categories

• The growing purchasing power is creating opportunities for local brands to scale up while simultaneously attracting global retailers who recognize the city’s significant market potential and are competing for high-quality retail space.
• Positive market sentiment and quality supply coming in the Prime and Suburbs submarkets is expected to support retailer expansion in terms of store count and new openings in growth clusters across these two submarkets as well as other key growth locations.