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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)
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