CBRE: India retail leasing rises 20% in H1 2026, led by fashion and apparel
India’s retail leasing reached about 3.9 million sq ft in H1 2026, according to CBRE South Asia. Fashion and apparel accounted for roughly 40% of demand, with particularly high shares in Chandigarh, Jaipur and Kochi.
What happened
CBRE South Asia · CBRE reported Indian retail leasing grew 20% year-on-year to 3.9 million sq ft in H1 2026. Fashion and apparel led with a 40% share, driven by
Key facts
- India retail leasing rose 20% year-on-year to approximately 3.9 million sq ft in H1 2026
- April-June 2026 leasing was approximately 2.0 million sq ft
- Fashion & Apparel accounted for approximately 40% of total leasing
- Food & Beverage accounted for approximately 14%
- Entertainment accounted for approximately 9%
- Jewellery and Homeware & Furnishings each accounted for approximately 7%
- Consumer Electronics accounted for approximately 6%
- Fashion & Apparel represented approximately 69% of leasing in Chandigarh and Jaipur
- Fashion & Apparel represented around 65% of leasing in Kochi
Why this matters
Target partnerships or acquisitions involving fashion retailers, mall platforms and regional operators positioned to capitalize on accelerating store-network expansion.
What to watch
- H2 2026 net absorption versus the 3.9 million sq ft H1 pace
- Prime mall and high-street rent growth, escalations and landlord incentives by city
- Fashion retailers' store-opening guidance, same-store sales and inventory levels
- New mall completions and vacancy rates in Chandigarh, Jaipur, Kochi and other tier-2 cities
- Consumer discretionary-spending indicators, festive-season sales and credit availability
- Share of leasing from domestic brands versus international entrants
- Increase market mapping and site pipelines in Chandigarh, Jaipur and Kochi, where fashion leasing demand is especially concentrated.
- Prioritize flexible lease structures, including turnover-linked rents, fit-out contributions, break clauses and exclusivity protections before prime-space competition intensifies.
- Use new stores as omnichannel fulfillment and returns nodes, not only sales outlets, to improve unit economics amid higher occupancy costs.
- Benchmark store productivity by micro-market and mall quality; avoid expanding solely to match competitors' announced footprints.
- Monitor adjacent-category whitespace, especially beauty, athleisure, F&B and experiential concepts that can benefit from fashion-led footfall.