India’s retail sector exhibited consistent demand from retailers in the first quarter of 2026, with a total gross leasing of 3.1 million square feet across the top seven cities from January to March. Despite a 15% decrease from the previous quarter, there was a slight 1% increase compared to the same period last year, indicating ongoing strength in leasing activities. The moderation in retail leasing was mainly due to the lack of significant new mall supply of high-quality institutional grade post the substantial mall infusion of 2.5 million sq ft in Q4 2025, as per a report by JLL.
Established international retailers have shown strong confidence in India’s consumption trends, with well-known foreign brands experiencing a 48% year-on-year growth in leasing. This growth is supported by their continued expansion strategies that leverage India’s growing middle class and resilient domestic consumption patterns. According to Rahul Arora, Senior Managing Director at JLL, retailers in Bengaluru and Chennai are shifting towards established high street locations, while Delhi-NCR and Hyderabad are emphasizing mall-centric activities, highlighting the need for a multi-format approach for successful expansion.
The retail sector in India witnessed a significant year in 2025, marked by a peak in gross leasing activity over three years. The heightened demand for retail spaces was met with a new supply infusion of nearly 6 million sq ft. The year 2025 saw a 54% year-on-year increase in annual leasing volume, totaling 12.5 million sq ft, and the report anticipates a similar growth trajectory for 2026. Key themes from the previous year included the rise of D2C brands, value fashion, increased retail space uptake by automobile players, and expansion by F&B operators.
Secondary markets also made substantial contributions to the national retail volumes, with Kolkata capturing a 10% market share driven by strong uptake in newly opened assets, as per the report.
