India's Retail Property Leasing Rises 19% to 5.8 Million Sq Ft in Nine Months

India's retail real estate market recorded approximately 5.8 million square feet of space absorption during January–September 2026, a year-on-year increase of around 19%, according to a CBRE Research report released on October 28 at CII Realty 2026.

Delhi-NCR led retail leasing with approximately 1.9 million sq ft, followed by Mumbai at around 1 million sq ft. Hyderabad recorded approximately 0.9 million sq ft. Together, the three markets accounted for about 67% of retail space absorption during the period.

Fashion and apparel drive leasing

Fashion and apparel brands accounted for 39% of retail leasing in the first nine months of 2026, making them the largest demand category. Domestic retailers represented 73% of leasing activity. Food and beverage brands also supported demand, particularly during the July–September quarter.

New retail supply remains concentrated

India added approximately 1.8 million sq ft of new retail space during the first nine months of 2026. Delhi-NCR accounted for around 1.3 million sq ft and Mumbai contributed about 0.5 million sq ft. In the third quarter alone, retail absorption was approximately 2 million sq ft.

Market Perspective

Rising retail leasing indicates that brands continue to seek physical locations despite inflationary pressures and cautious consumer sentiment. For commercial property owners, tenant mix, footfall, location and occupancy costs remain important. Hyderabad's reported leasing activity points to continued retailer interest, but it should not be interpreted as proof that every mall or retail project will achieve strong occupancy. Investors should evaluate each asset's tenant quality and rental sustainability.