India's Retail Real Estate Sees 1.95 Million Sq Ft Leasing in Q1 2026 Amid Supply Constraints
India’s retail real estate sector recorded leasing of 1.95 million sq ft across the top eight cities in the January-March quarter of 2026, as demand remained steady despite limited new supply, according to a report by Cushman & Wakefield.
Leasing declined 28% quarter-on-quarter and 10% year-on-year, largely due to the absence of new mall completions during the period. However, occupier demand remained intact following strong activity in 2025.
Mall leasing gained share during the quarter, accounting for 47% of total leasing compared to 33% a year ago, indicating a growing preference for organised retail formats. High streets continued to dominate with a 53% share of total absorption.
Delhi-NCR led leasing activity with a 30% share, followed by Hyderabad (22%) and Mumbai (13%). Together, the three cities accounted for 65% of total leasing.
Category-wise, fashion and food and beverage segments together contributed 46% of leasing, while entertainment and department stores accounted for 11% and 10% respectively.
Domestic retailers continued to dominate, accounting for 87% of total leasing, while international brands increased their presence, particularly in malls.
Vacancy levels remained tight across grade-A retail assets, with mall vacancy at 5.7% and premium assets at 2.6%. Prime high street rentals also saw modest growth on a quarterly and annual basis.
Gautam Saraf, executive managing director of the company said leasing activity remains constrained by limited availability of quality retail space, even as demand from both domestic and international retailers continues.
