India retail leasing climbs 18% YoY to 2.4M sq ft in Q2 2026 on strong consumer demand
Retail leasing across India rose 18% year-on-year to 2.4 million sq ft in Q2 2026, signaling expanding physical footprints and continued format growth as consumer demand holds firm.
What happened
retail-company · India's retail leasing rose 18% year-on-year to 2.4 million sq ft in Q2 2026, driven by strong consumer demand, indicating expanding physical
Key facts
- 18% YoY
- 2.4 million sq ft
- Q2 2026
Why this matters
Accelerating store-format growth creates a window to acquire regional retail chains or secure anchor locations ahead of intensifying competition for space.
What to watch
- Q3 2026 leasing volume trend (sustained >15% YoY vs deceleration)
- Prime high-street and mall rental escalation rates
- New mall supply completion pipeline vs absorption
- Consumer discretionary spending and festive season sales data
- RBI rate decisions and inflation prints affecting retailer capex
- Anchor and F&B tenants pre-commit space in upcoming Grade-A malls to lock in current rents
- Developers accelerate new mall completions and re-tenanting of underperforming assets
- Omnichannel retailers expand experiential and quick-commerce dark store hybrids in metros
- International brands scale India entry via franchise and JV partnerships