India retail leasing jumps 17.6% YoY to 2.4 msf in Q2 2026 on tight supply
Top-eight cities logged 2.4 msf of gross leasing in Q2 2026, up 17.6% YoY and 23.2% QoQ, per Cushman & Wakefield. Malls led at 51.3% share, domestic retailers drove 82.4% of demand, Grade A vacancy fell to 5%, and rentals rose 5.1% YoY. H1 hit 4.35 msf with a 12.7 msf pipeline through 2028.
What happened
India retail leasing grew 17.6% YoY to 2.4 msf in Q2 2026 across top eight cities amid tight supply, per Cushman & Wakefield. Malls led, domestic retailers
Key facts
- 2.4 msf Q2 2026 GLV
- 17.6% YoY growth
- 23.2% QoQ
- 4.35 msf H1 2026
- malls 51.3% (1.23 msf)
- main streets 48.7% (1.17 msf)
- domestic retailers 82.4%
- international 17.6%
- fashion 28.2%
- F&B 17.2%
- Grade A vacancy 5%
- rentals up 5.1% YoY
- 12.7 msf pipeline 2026-2028
Why this matters
Domestic retailers driving 82.4% of demand amid a tight-supply market makes India a prime target for retail expansion, JV, or platform acquisition ahead of the 2028 supply wave.
What to watch
- Q3/Q4 2026 leasing prints — whether 17.6% YoY momentum holds or normalizes
- Pipeline delivery timing: 2027 completions vs slippage into 2028
- Grade A vacancy movement below or back above 5%
- Domestic retailer expansion capex and same-store-sales guidance
- RBI rate path and discretionary consumption / festive-season data
- REITs and mall developers accelerate acquisition and redevelopment of Grade A assets to capture rental upside
- Domestic retail chains lock in multi-year leases and larger flagship formats before rents climb further
- Developers reprioritize pipeline toward top-eight cities where absorption is proven, delaying tier-2 launches
- International brands enter via JV or franchise to grab scarce prime slots ahead of the supply crunch