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India's Retail Leasing Hits 3.1 Million Sq Ft in Q1 2026, Foreign Brands Surge

India's retail sector maintained steady demand in Q1 2026 with gross leasing of 3.1 million sq ft across top seven cities. Foreign brands showed robust confidence, recording 48% year-on-year leasing growth. The report highlights a multi-format approach balancing malls and high-street corridors as key to success. With a 46.1 million sq ft pipeline through 2030, India's retail real estate is poised for sustained expansion.

Key Points: India Retail Leasing Hits 3.1M Sq Ft, Foreign Brands Up 48%

  • Retail leasing totals 3.1M sq ft in Q1 2026
  • Foreign brands record 48% YoY leasing growth
  • Delhi-NCR and Hyderabad lead mall-centric activity
  • 46.1M sq ft institutional-grade pipeline through 2030
2 min read

Foreign brands make a beeline as India's retail leasing hits 3.1 million sq ft in Jan-March

India retail leasing reaches 3.1M sq ft in Q1 2026. Foreign brands see 48% YoY growth. JLL report highlights multi-format retail expansion.

"Successful expansion today demands a multi-format approach balancing aspirational enclosed destinations with street-level accessibility. - Rahul Arora, JLL"

Mumbai, May 12

India's retail sector showed steady retailer demand in Q1 2026, as gross leasing totalled 3.1 million square feet for the top seven cities in the January-March period, a report showed on Tuesday.

Despite a 15 per cent quarter-on-quarter (q-o-q) moderation, there was a marginal 1 per cent year-on-year (Y-O-Y) uptick, indicative of continued resilience in the leasing momentum. The quarterly moderation in retail leasing is largely due to the absence of sizeable new mall supply of institutional grade quality following strong mall infusion of 2.5 million sq ft in Q4 2025, according to the JLL report.

Established international retailers demonstrated robust confidence in India's consumption story. Well-known foreign brands recorded 48 per cent year-on-year leasing growth, supported by sustained expansion strategies capitalising on India's aspirational middle class and resilient domestic consumption patterns.

"While Bengaluru and Chennai retailers pivot to established high street corridors, Delhi-NCR and Hyderabad's continued mall-centric activity underscores a critical insight: successful expansion today demands a multi-format approach balancing aspirational enclosed destinations with street-level accessibility," said Rahul Arora, Head-Office Leasing and Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.

With 46.1 million sq ft of institutional-grade pipeline through 2030 and demand consistently outpacing supply, "we are witnessing not just resilience, but the foundation for India's next retail real estate expansion cycle driven by rising consumption, D2C physical migration, and retailer format sophistication, he mentioned.

2025 was a redefining year for Indian retail sector as it witnessed a three-year peak in gross leasing activity. Heightened demand for retail spaces was also matched with new supply infusion of nearly 6 million sq ft.

At 12.5 million sq ft, 2025 marked a 54 per cent YoY growth in annual leasing volume, and we anticipate a similar demand trajectory to unfold in 2026, said the report.

D2C brands, value fashion, retail space take-up by automobile players, and expansion by F&B operators were key themes that played out last year.

Secondary markets also contributed meaningfully to national volumes. Kolkata captured 10 per cent market share, bolstered by healthy uptake in newly inaugurated assets, said the report.

- IANS

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Reader Comments

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Priya S
The rise in D2C brands moving to physical retail is interesting. So many online-first brands are now opening stores in malls. Shows that Indians still love the mall experience. My family spends every weekend at Phoenix Marketcity in Mumbai! 🛍️
R
Ravi K
48% increase in foreign brand leasing is impressive, but I worry about the impact on local kirana shops and small retailers. Our traditional marketplaces are dying. The government should ensure that mall development doesn't kill street commerce completely. Balance is key.
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Kavya N
Kolkata getting 10% market share is a big deal! We always talk about Delhi-Mumbai-Bangalore, but Tier 2 cities are where the real growth will happen. With better infrastructure, even places like Lucknow and Indore will attract big brands. Exciting times ahead! 😊
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Arjun K
Fine for urban centers, but what about infrastructure? Malls are built but traffic jams around them are impossible. And rents in places like Connaught Place or MG Road are already sky-high. If foreign brands push rents further up, smaller businesses will be priced out.
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Sneha F
As someone working in retail real estate, can confirm this is accurate! 2025 was indeed a boom year. The multi-format approach they mention is real - brands now want both mall presence and high street stores. Also, F&B expansion is massive - every new mall has entire floors dedicated to restaurants now.

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