India's retail leasing rises 20 pc in H1 despite inflationary pressures; expansion momentum seen continuing: CBRE
New Delhi, July 29
India's retail leasing activity remained resilient in the first half of 2026 despite inflationary pressures and geopolitical headwinds, with gross leasing rising 20 per cent year-on-year to around 3.9 million square feet, according to a CBRE report.
The report said leasing momentum was supported by continued retailer expansion and expects organised retail real estate to continue growing across sectors, led by fashion and apparel, entertainment, jewellery and experience-driven retail formats. It added that upcoming Grade A retail developments and infrastructure projects are likely to support further expansion into suburban and emerging retail corridors.
"Major infrastructure projects, including expanding metro networks and ring roads, could accelerate this trend by broadening geographic catchments and improving consumer access," the report said.
About 0.9 million sq. ft. of new retail supply became operational during the January-June period. Delhi-NCR accounted for all the new supply in H1 2026.
Fashion & Apparel remained the biggest contributor to leasing activity, accounting for around 40 per cent of total space take-up, led by department stores, mid-range fashion and athleisure brands.
Food & Beverage followed with around 14 per cent, while Entertainment contributed about 9 per cent. Jewellery and Homeware & Furnishings each accounted for around 7 per cent, followed by Consumer Electronics at 6 per cent.
Outside the major metropolitan cities, fashion and apparel dominated retail demand even more strongly. The segment accounted for around 69 per cent of leasing activity in both Chandigarh and Jaipur, and about 65 per cent in Kochi, reflecting continued expansion by organised fashion retailers into Tier-II markets.
The report noted that domestic retailers accounted for more than 70 per cent of leasing activity during the first half of the year, while direct-to-consumer (D2C) brands contributed around 28 per cent of overall leasing.
It also said institutional investment in organised retail real estate is expected to maintain momentum, while malls are likely to increasingly focus on experience-led formats and mixed-use developments to drive consumer engagement and support long-term growth.
— ANI
Reader Comments
Finally some good news! With metro expansions and ring roads coming up, even suburban areas will get better access to malls and branded stores. My city needs more entertainment zones and food courts—bring it on! 😄
Impressive resilience. The 40% share from fashion and apparel is predictable, but the 28% from D2C brands is noteworthy. It shows how digital-first brands are now seeking physical presence to build trust with Indian consumers. Smart move.
The 20% rise in leasing is impressive, but let's not ignore that inflation is still hurting the common man's wallet. Many families are cutting back on non-essential spending. Retailers may be expanding, but footfalls don't always translate to purchases. Hope the momentum is sustainable. 🤔
Experiential retail is the future! With multiplexes, food courts, and even indoor adventure zones in malls, it's becoming a one-stop destination for families. I just hope the rents don't push up prices for us consumers. Abhi toh sab mehnga ho raha hai! 😅
Great to see domestic retailers dominating with over 70% leasing share. At least we're supporting Indian brands while enjoying international options. The jewellery and homeware growth also reflects our cultural preferences—always a good sign! ✨
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