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Grade A mall vacancy in India fell to 4.8 per cent in the third quarter of 2026 as continued retailer demand met limited availability of quality space, with around 12.7 million square feet (MSF) of new Grade A mall supply expected through 2028, according to Cushman & Wakefield.
The real estate consultancy said retail leasing across the top eight cities stood at 2.22 MSF in Q3 2026, down 7.3 per cent quarter-on-quarter and 4.4 per cent year-on-year. However, year-to-date leasing remained broadly stable at 6.57 MSF, up 0.4 per cent from a year earlier. The tighter availability was reflected in Grade A mall vacancy, which declined 20 basis points from 5 per cent in the previous quarter. The market saw no new Grade A mall supply for the third consecutive quarter, while main streets accounted for 67.9 per cent of quarterly leasing at 1.51 MSF. Limited availability is increasingly influencing the pace of leasing, Gautam Saraf, Executive Managing Director Mumbai & New Business, Cushman & Wakefield, said. He said the upcoming supply could provide greater room for brands to expand, with about 12.7 MSF of Grade A mall space expected through 2028. Of this, around 1.35 MSF is projected for completion in 2026, while the remaining supply is expected through 2028. Delhi NCR will lead the pipeline, followed by Bengaluru and Chennai. As we enter the festive period, we expect strong consumption sentiment to provide an additional tailwind for retailers and reinforce the underlying demand environment, Saraf said. Main streets recorded a 29.3 per cent rise in leasing quarter-on-quarter and a 33.1 per cent increase year-on-year, while mall leasing fell 42.1 per cent QoQ and 37.8 per cent YoY. Domestic retailers continued to dominate, accounting for 86.3 per cent of leasing activity. Fashion was the largest demand category with a 24.9 per cent share, followed by food and beverage at 19.2 per cent and accessories and lifestyle at 13.1 per cent. Together, the three categories accounted for 57.2 per cent of leasing. Delhi NCR, Hyderabad and Mumbai together accounted for 61 per cent of quarterly leasing. Cushman & Wakefield said the focus on well-positioned, experience-led retail destinations is expected to strengthen as the market evolves. (ANI)
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