Delhi-NCR retail leasing jumps 45% in Q1 as fashion and F&B demand accelerates
Delhi-NCR leased 0.59 million sq ft of retail space in Q1 2026, up from 0.41 million sq ft a year earlier, according to Cushman & Wakefield. Malls captured 64% of activity, while Delhi-NCR accounted for 30% of leasing across India’s top eight cities.
What happened
Cushman & Wakefield · 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 leasing dominated,
Key facts
- Delhi-NCR retail leasing rose 45% year-on-year to 0.59 million sq ft in January-March 2026, versus 0.41 million sq ft a year earlier
- Shopping malls accounted for 64% of Delhi-NCR leasing; high streets accounted for 36%
- Delhi-NCR held a 30% share of leasing across India’s top eight cities
- Top-eight-city leasing fell 10% to 1.95 million sq ft from 2.17 million sq ft
- Calendar 2025 leasing across eight cities totalled 9.21 million sq ft
Why this matters
Retail companies should assess partnerships, portfolio acquisitions, and early lease commitments in Delhi-NCR malls to secure strategic locations before accelerating demand further narrows available space.
What to watch
- Q2 and Q3 Delhi-NCR net absorption versus the 0.59 million sq ft Q1 pace.
- Prime mall vacancy, quoted rents, rent-free periods and tenant-sales productivity.
- New mall completions, redevelopment announcements and pre-commitment levels in Delhi, Gurgaon, Noida and Greater Noida.
- Store-opening guidance from major apparel, beauty, quick-service restaurant, cafe and casual-dining chains.
- Consumer discretionary-spending indicators, especially premium apparel, dining-out and weekend footfall trends.
- Whether national top-eight-city leasing continues to contract despite Delhi-NCR outperformance.
- Mall owners will seek to convert strong Q1 demand into longer lease tenures, stepped rentals and turnover-linked agreements.
- Fashion brands are likely to prioritize flagship stores, omnichannel fulfillment-enabled outlets and premium mall clusters over broad-based expansion.
- F&B operators will compete for food-court, entertainment-zone and destination dining locations, prompting landlords to rebalance tenant mixes away from lower-productivity categories.
- Retailers priced out of dominant malls may target Gurgaon, Noida and emerging high streets, supporting localized rental appreciation and redevelopment activity.
- Developers may accelerate mall repositioning, mixed-use retail additions and pre-leasing campaigns, although construction and approval timelines will keep near-term supply tight.