Retail Leasing Reaches a Four-Year High

India’s organised retail real estate market recorded its strongest first-half leasing performance in four years, with gross leasing reaching approximately 3.9 million sq. ft. in H1 2026, up 20% year-on-year.

Domestic retailers remained the dominant force, accounting for 79.1% of total leasing activity. At the same time, international brands accelerated their expansion, with leasing by overseas retailers increasing 62.1% year-on-year.

Fashion and apparel represented the largest share of leasing at 40%, followed by food and beverage at 14% and entertainment at 9%, highlighting the continued importance of lifestyle and experience-led retail formats. 

New Supply and Infrastructure Support Expansion

The supply side is beginning to respond to stronger demand. Around 0.9 million sq. ft. of new retail space became operational during the first half of 2026, all located in Delhi-NCR.

Looking further ahead, India has more than 45 million sq. ft. of retail developments in the pipeline through 2030.

Infrastructure improvements, including metro expansions and ring roads, are also expected to expand consumer catchment areas and support the emergence of new retail micro-markets.

Outlook

India’s organised retail property sector maintains a positive long-term outlook, supported by growing domestic brands, stronger participation from international retailers and rising consumer spending power.

The next phase of growth is likely to be driven not simply by additional retail space, but by better locations, stronger tenant mixes and more experience-led destinations.

For developers and investors, this suggests that quality, connectivity and the ability to attract leading brands will become increasingly important as India’s retail real estate market expands.

The contents of this article were contributed by Manu Bhazin, Head of IQI India.