Retail sector leasing in India’s top eight cities reached 1.95 million square feet in the first quarter of 2026, showing steady demand despite limited new mall supply. This marked a 28% decrease quarter-on-quarter and a 10% decline year-on-year, as reported by Cushman & Wakefield. The report highlighted that despite the moderation, occupier interest remained strong following a robust performance in 2025.
Mall leasing activity, accounting for 47% of total leasing, strengthened during the quarter, up from 33% compared to the previous year. Main streets continued to dominate leasing volumes at 53%, driven by sustained demand for high-visibility locations. Gautam Saraf, Executive Managing Director at Cushman & Wakefield, emphasized the demand-led environment in India’s retail real estate market.
Delhi NCR led city-level leasing activity with a 30% share at 0.59 million square feet, followed by Hyderabad at 22% and Mumbai at 13%. Fashion and food & beverage segments collectively contributed 46% to total leasing, with entertainment rising to an 11% share primarily in malls. Department stores and furniture & furnishing sectors also saw leasing activity across malls and main streets, accounting for 10% and 5% shares, respectively.
