India’s Retail Leasing Reaches 2.22 Million Sq Ft in Q3 2026

Retail leasing declined 7.3 per cent quarter-on-quarter and 4.4 per cent year-on-year during the July-September quarter. However, leasing activity for the first nine months of 2026 reached 6.57 MSF, broadly in line with the previous year and marginally higher by 0.4 per cent.

Main streets remained the primary driver of leasing activity, accounting for 67.9 per cent of the quarterly total at 1.51 MSF. Leasing in these high-visibility retail locations increased 29.3 per cent from the previous quarter and 33.1 per cent year-on-year.

Mall leasing contributed the remaining 32.1 per cent, or 0.71 MSF. Activity in malls fell 42.1 per cent quarter-on-quarter and 37.8 per cent year-on-year, with the availability of suitable Grade A retail space continuing to remain limited.

The report noted that the market has seen no new Grade A mall supply for three consecutive quarters. Grade A mall vacancy has also fallen below 5 per cent, highlighting the supply constraints facing retailers.

Around 12.7 MSF of Grade A mall space is expected to be added across key markets through 2028, which could gradually ease the shortage of quality retail space. Delhi NCR is expected to account for the largest share of the upcoming supply, followed by Bengaluru and Chennai. Around 1.35 MSF is projected to be completed during 2026.

“India’s retail market continues to demonstrate steady underlying occupier interest, even as quality retail space remains constrained. While leasing moderated during the quarter, year-to-date activity remains largely in line with last year, with a slight increase,” said Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & Wakefield.

He added that the upcoming festive season could support consumption and provide additional momentum to retailers.

Domestic retailers continued to dominate leasing activity in the third quarter, accounting for 86.3 per cent of total volumes at 1.92 MSF. International retailers made up the remaining 13.7 per cent, with leasing of around 0.3 MSF.

Delhi NCR, Hyderabad and Mumbai together accounted for 61 per cent of total retail leasing during the quarter. Delhi NCR led the market with 0.55 MSF, representing 24.9 per cent of the overall activity, followed by Hyderabad with 0.45 MSF and Mumbai with 0.35 MSF.