Delhi-NCR retail leasing jumps 45% in Q1 as fashion and F&B lead demand
Delhi-NCR retail leasing reached 0.59 million sq ft in Q1 2026, up 45% year on year, with malls accounting for 64% of activity. Across the top eight cities, leasing fell 10% to 1.95 million sq ft as supply constraints tempered otherwise strong organised retail demand.
What happened
Cushman & Wakefield · Delhi-NCR retail leasing rose 45% year-on-year to 0.59 million sq ft in Q1 2026, led by malls and fashion/F&B demand. Across eight major
Key facts
- Delhi-NCR retail leasing: 0.59 million sq ft in January-March 2026
- Delhi-NCR leasing growth: 45% year-on-year
- Delhi-NCR leasing in prior-year quarter: 0.41 million sq ft
- Shopping malls' share of Delhi-NCR leasing: 64%
- High streets' share of Delhi-NCR leasing: 36%
- Delhi-NCR share of top-eight-city leasing: 30%
- Top-eight-city Q1 leasing: 1.95 million sq ft
- Top-eight-city Q1 leasing decline: 10% year-on-year
- Top-eight-city prior-year Q1 leasing: 2.17 million sq ft
- Top-eight-city retail leasing in calendar 2025: 9.21 million sq ft
Why this matters
Strong Delhi-NCR mall absorption creates a case for partnerships, acquisitions or development pipelines in premium retail assets, especially those suited to fashion and F&B tenants.
What to watch
- Delhi-NCR mall vacancy, net effective rents and renewal escalations in Q2-Q3 2026.
- New Grade-A mall completions, opening-date slippages and pre-commitment levels across NCR.
- Quarterly same-store sales and store-level occupancy-cost ratios for fashion and F&B chains.
- Whether top-eight-city leasing rebounds as supply is delivered or remains negative despite demand.
- Growth in tier-2 retail leasing and high-street transactions as evidence of demand displacement.
- Consumer discretionary spending, restaurant footfall and retailer expansion guidance during the festive season.
- Prioritise Delhi-NCR flagship sites and renewals in dominant malls before vacancy compresses further.
- Use turnover-linked rents, fit-out contributions and phased openings to contain occupancy-cost risk in premium locations.
- Build a parallel pipeline in high streets, mixed-use assets and tier-2 catchments rather than relying solely on scarce mall space.
- For fashion and F&B, pair new-store commitments with localised assortment, delivery integration and experiential formats to lift sales per square foot.
- Track competing brand openings in the same malls to avoid category crowding and cannibalisation.