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Mall Retail Leasing Drops 38% Across Eight Major Cities
Retailers leased less space in shopping malls during July-September 2026.
Mall leasing fell by 38% in eight major Indian cities.
At the same time, retailers leased more space on busy shopping streets, where leasing rose by 33%.
High streets made up most of the retail leasing during the quarter.
Experts said this happened because good-quality mall space is difficult to find.
Total leasing for the first nine months of 2026 still increased slightly.
No new shopping malls opened in the eight cities during that period.
More mall space expected by 2028 could give retailers more choices.
Shopping-mall retail leasing fell 38% to 0.71 million square feet in July-September 2026 across eight major cities.
High-street retail leasing rose 33% to 1.51 million square feet during the same period.
Combined retail leasing declined nearly 5% year-on-year to 2.22 million square feet.
High streets accounted for 68% of leasing, while shopping malls represented 32%.
Grade A mall vacancy fell below 5%, while 12.7 million square feet of new supply is expected through 2028.
- Who
- Retailers, Cushman & Wakefield, Gautam Saraf and Shriram PM Monga.
- What
- Shopping-mall retail leasing fell 38%, while high-street leasing rose 33% in the third quarter of 2026.
- Where
- Mumbai, Delhi-NCR, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.
- When
- July-September 2026; the report was published on October 2, 2026.
- Why
- Limited availability of premium retail space and tight Grade A mall vacancies pushed more leasing activity toward high streets.
Key facts
- Mall leasing
- 0.71 million sq ft, down 38% year-on-year
- High-street leasing
- 1.51 million sq ft, up 33% year-on-year
- Total quarterly leasing
- 2.22 million sq ft, down nearly 5% from 2.33 million sq ft
- Leasing mix
- High streets accounted for 68%; shopping malls accounted for 32%
- January-September leasing
- 6.57 million sq ft, a marginal increase
- Grade A mall vacancy
- Below 5%; NCR vacancy was cited at 4.8%
- Expected new supply
- 12.7 million sq ft through 2028
Quotes
Shriram PM Monga
Co-founder of property consultancy firm SRED Global
“Against this backdrop, the 12.7 million sq ft supply pipeline through 2028 comes at an important point in the market cycle. As this stock enters the market, it should create greater headroom for brands to expand and could unlock demand currently constrained by limited options”
thehindubusinessline.com
livemint.com
“India's retail market continues to demonstrate steady underlying occupier interest, even as quality retail space remains constrained”
thehindubusinessline.com
livemint.com
Sources
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