Delhi-NCR retail leasing jumps 45% in Q1 as fashion and F&B demand accelerates
Delhi-NCR retail leasing rose to 0.59 million sq ft in January-March 2026, with malls taking 64% of space. Fashion and F&B led demand, even as limited quality supply contributed to a 10% decline in leasing across India’s top eight cities.
What happened
Delhi-NCR retail real estate market · Delhi-NCR retail leasing rose 45% year-on-year in Q1 2026 to 0.59 million sq ft, led by fashion and F&B demand. Mall
Key facts
- Delhi-NCR retail leasing rose 45% year-on-year to 0.59 million sq ft in January-March 2026, from 0.41 million sq ft
- Shopping malls accounted for 64% of Delhi-NCR leasing; high streets accounted for 36%
- Delhi-NCR represented 30% of leasing across India’s top eight cities
- Eight-city leasing fell 10% to 1.95 million sq ft from 2.17 million sq ft
- Eight-city retail leasing totaled 9.21 million sq ft in calendar 2025
Why this matters
Fashion and F&B brands should accelerate Delhi-NCR expansion partnerships in high-quality malls, where demand momentum is strong but available space is increasingly limited.
What to watch
- Quarterly Delhi-NCR net absorption, vacancy and effective-rent data for Grade A malls versus high streets.
- New mall completions, redevelopment announcements and pre-leasing levels in Gurgaon, Noida and key Delhi catchments.
- Fashion and F&B store-opening guidance, especially from international entrants, premium brands and organized restaurant operators.
- Same-store sales, retailer margins and consumer discretionary spending trends, which determine whether aggressive expansion remains viable.
- Whether leasing in the other seven major cities recovers from the reported 10% decline, broadening demand beyond Delhi-NCR.
- Mall operators will accelerate tenant remixing, replacing lower-productivity categories with international fashion, beauty, athleisure, experiential retail and scalable F&B concepts.
- Retailers will compete earlier for upcoming mall inventory, using pre-commitments and longer leases to secure prime locations.
- Landlords will seek turnover-linked rent structures and stronger minimum guarantees from high-demand fashion and restaurant tenants.
- Developers will advance refurbishment, expansion and mixed-use retail plans to capture the supply shortage, though completion timelines will lag current demand.
- National chains will increasingly treat Delhi-NCR as a priority expansion market while rationalizing weaker stores in supply-constrained or lower-productivity cities.