India Retail Real Estate Leasing Rises 19% in First Nine Months of 2026

India's retail real estate market saw space absorption reach 5.8 million sq. ft. in the first nine months of 2026, marking a 19 per cent year-on-year increase. Delhi-NCR, Mumbai, and Hyderabad drove the majority of the leasing activity, led primarily by domestic fashion, apparel, and food and beverage brands.

India’s retail real estate market recorded 5.8 million sq. ft. of space absorption in the first nine months of 2026, marking a 19 per cent increase year-on-year, according to a report by CBRE. During the same period, 1.8 million sq. ft. of new retail supply was added to the market.

Geographically, leasing activity was heavily concentrated in key metropolitan regions. Delhi-NCR, Mumbai and Hyderabad collectively accounted for 67 per cent of the total leasing volume during the first nine months of the year.

During the July-September quarter specifically, retail space absorption stood at 2 million sq. ft., supported by 0.9 million sq. ft. of new supply. In this quarter alone, Delhi-NCR, Mumbai and Hyderabad accounted for over 69 per cent of the total leasing activity.

Demand during the nine-month period was primarily led by fashion and apparel retailers, along with food and beverage operators. Fashion and apparel alone accounted for 39 per cent of the total retail space leased.

In terms of occupier demographics, domestic retailers dominated the market, accounting for 73 per cent of total leasing. Brands originating from Europe, the Middle East and Africa (EMEA) followed, representing 11 per cent of the leasing activity.

Looking ahead, market participants note that limited availability of quality space in prime locations is shifting focus toward secondary and peripheral areas. This trend is expected to be driven by a pipeline of Grade A malls and improving infrastructure, which will likely spur the development of new high streets across these major markets, according to Ram Chandnani, Managing Director, Leasing Services, India, CBRE.

"The 19 per cent year-on-year growth in retail space absorption highlights resilient underlying demand within India's retail sector, despite cautious consumer sentiment. With domestic brands driving the majority of leasing and prime locations facing supply constraints, expansion into secondary and peripheral areas through Grade A malls and high streets presents a clear growth trajectory for commercial real estate and retail businesses alike." — Dr. Shishir Gupta, Founder & CEO, StartupLanes