Delhi-NCR retail leasing rises 45% in Q1 as fashion and F&B demand builds
Delhi-NCR leased 0.59 million sq ft of retail space in January-March 2026, up from 0.41 million sq ft a year earlier. Malls accounted for 64% of leasing, while constrained quality supply remains a key challenge for domestic and international retailers.
What happened
Delhi-NCR retail market · Delhi-NCR retail leasing rose 45% year-on-year to 0.59 million sq ft in Q1 2026, led by fashion and F&B demand. Mall and high-street
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 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
- Top-eight-city retail leasing totaled 9.21 million sq ft in calendar 2025
Why this matters
Domestic and international retailers should prioritize partnerships, pre-leasing and selective acquisitions in prime Delhi-NCR malls as quality retail space becomes harder to access.
What to watch
- Quarterly net absorption versus new Grade A retail completions in Delhi-NCR.
- Prime mall rent growth, vacancy rates, and lease incentive trends.
- Number of new international brand entries and multi-store expansion announcements.
- F&B and fashion store closure rates, same-store sales, and occupancy-cost ratios.
- Pre-leasing levels at upcoming malls and redeveloped retail projects.
- International fashion, beauty, and F&B brands increase Delhi-NCR market-entry and expansion mandates.
- Mall owners raise asking rents for prime units and favor brands with strong sales productivity and longer lease commitments.
- Retailers renegotiate for revenue-share structures, exclusivity clauses, and phased store openings.
- Developers pursue mall upgrades, tenant remixing, and conversion of underperforming commercial space into experiential retail.