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India Retail Leasing Reaches 2.22 Million Square Feet
Retail companies in India rented 2.22 million square feet of space during the third quarter of 2026.
This was less than in the previous quarter and slightly less than a year earlier.
Stores on busy main streets made up most of the new leases.
Shopping malls received fewer leases because good-quality mall space is hard to find.
Domestic Indian retailers made most of the deals.
Delhi NCR, Hyderabad, and Mumbai together accounted for 61% of leasing.
No new Grade A malls opened for the third quarter in a row.
Almost 12.7 million square feet of new Grade A mall space is expected by 2028.
The report said the festive season could encourage stronger retail demand.
Retail leasing across India’s top eight cities reached 2.22 million square feet in Q3 2026.
Quarterly leasing declined 7.3% from Q2 and 4.4% year over year.
Main streets accounted for 67.9% of leasing, while malls represented 32.1%.
Domestic retailers generated 86.3% of leasing activity, totaling 1.92 million square feet.
Nearly 12.7 million square feet of Grade A mall space is expected by 2028.
- Who
- Retailers in India, led by domestic retailers, and Cushman & Wakefield, which issued the report.
- What
- Retail leasing reached 2.22 million square feet in Q3 2026, down quarter over quarter and year over year.
- Where
- Across India’s top eight cities, with Delhi NCR, Hyderabad, and Mumbai leading activity.
- When
- The third quarter of 2026; the report was released on Thursday.
- Why
- Leasing was supported by retailer demand for visible main-street locations, while limited quality mall space constrained mall activity.
Key facts
- Q3 leasing
- 2.22 million square feet across the top eight cities
- Quarterly change
- Down 7.3% quarter over quarter
- Annual change
- Down 4.4% year over year
- Year-to-date leasing
- 6.57 million square feet, up 0.4% year over year
- Main-street share
- 67.9%, or 1.51 million square feet
- Domestic retailer share
- 86.3%, or 1.92 million square feet
- Expected mall supply
- Nearly 12.7 million square feet of Grade A space through 2028
Quotes
Gautam Saraf
Executive Managing Director – Mumbai & New Business at Cushman & Wakefield
“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.”
thehansindia.com
“As we enter the festive period, we expect strong consumption sentiment to provide an additional tailwind for retailers and reinforce the underlying demand environment.”
thehansindia.com
Sources
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