Delhi-NCR retail leasing rises 45% in Q1, led by fashion and F&B demand
Delhi-NCR retail leasing reached 0.59 million sq ft in Q1 2026, up from 0.41 million sq ft a year earlier, Cushman & Wakefield data showed. Malls captured 64% of transactions, while fashion and food-and-beverage occupiers drove demand amid constrained quality supply.
What happened
Cushman & Wakefield · Delhi-NCR retail leasing increased 45% to nearly 6 lakh sq ft in Q1 2026, led by malls, fashion and F&B demand. Limited quality supply
Key facts
- Delhi-NCR retail leasing rose 45% year-on-year to 0.59 million sq ft in Q1 2026 from 0.41 million sq ft
- Malls accounted for 64% of Delhi-NCR leasing; high streets accounted for 36%
- Delhi-NCR represented 30% of leasing across eight major cities
- Eight-city leasing fell 10% to 1.95 million sq ft from 2.17 million sq ft
- Eight-city retail leasing totalled 9.21 million sq ft in calendar 2025
Why this matters
Constrained quality supply and mall-led transaction activity make partnerships, acquisitions or development pipelines in Delhi-NCR’s premium retail assets strategically more valuable.
What to watch
- Quarterly Delhi-NCR net absorption versus new Grade-A mall supply completions.
- Prime-mall base-rent growth, fit-out contributions, revenue-share terms, and vacancy rates.
- Fashion and F&B same-store sales growth, store-opening guidance, and closure rates.
- Leasing share shifting from malls toward high streets or mixed-use developments.
- Consumer discretionary-spending indicators, inflation, and restaurant/fashion retailer margin commentary.
- Fashion chains accelerate flagship and larger-format store openings in premium Delhi-NCR malls, prioritising high-footfall corridors over standalone high streets.
- F&B operators expand through clustered openings, food-hall concepts, and experiential dining formats that lengthen mall dwell time.
- Mall owners raise asking rents for prime vacancies, reduce rent-free periods, and favour established national brands with stronger balance sheets.
- Retailers increase use of turnover-linked rents, shorter lock-in structures, and omnichannel fulfilment capabilities to offset fixed occupancy-cost risk.
- Owners of ageing malls pursue tenant-mix upgrades, entertainment additions, and redevelopment to compete for limited high-quality occupiers.