India’s retail real estate sector continued its growth trend in the second quarter of 2026, with a gross leasing volume of 2.4 million square feet in the top eight cities, marking a 23.2% increase quarter-on-quarter and a 17.6% rise year-on-year. The report by Cushman & Wakefield highlighted sustained occupier demand despite ongoing supply limitations.
During the first half of 2026, total leasing reached 4.35 million square feet, showing a 3.1% uptick from the same period in 2025, with no new Grade A mall supply added for the second consecutive quarter. The uptake of space in projects completed in the second half of 2025 remained robust, indicating a continued preference for organized retail formats by retailers.
Notably, malls accounted for 51.3% of total leasing, amounting to 1.23 million square feet, with a significant 33.4% quarter-on-quarter and 21.9% year-on-year growth. Main Streets also attracted substantial occupier interest, representing 48.7% share (1.17 MSF) during the quarter, with leasing volumes increasing by 14.0% quarter-on-quarter and 13.3% year-on-year.
Domestic retailers dominated the leasing landscape, contributing 82.4% of total leasing activity, primarily focused on main streets. International retailers, comprising 17.6% of the market, showed a preference for malls managed by institutions, accounting for nearly 76% of their leasing activities.
Gautam Saraf, Executive Managing Director, Mumbai & New Business at Cushman & Wakefield, noted the competition for well-located assets, leading to tighter vacancies, higher rentals, and increased leasing activity across major cities. The expected addition of new supply and sustained consumption growth are anticipated to enhance market availability of quality retail space, providing expansion opportunities for retailers.
Delhi NCR, Mumbai, and Hyderabad collectively contributed 64% of Q2 leasing, with Delhi NCR leading at 0.67 million square feet, followed by Mumbai at 0.50 million square feet and Hyderabad at 0.37 million square feet. Fashion emerged as the top category for leasing, holding a 28.2% share, followed by food and beverage at 17.2%.
