India retail leasing rises 17.6% YoY as Grade A mall vacancy hits five-year low

India’s retail leasing reached 2.4 million sq ft in Q2 2026, led by Delhi NCR, Mumbai and Hyderabad. Grade A mall vacancy fell to 5%, while domestic retailers accounted for 82.4% of leasing activity, Cushman & Wakefield said.

— FiledSun, 26 Jul, 2026, 17:48 IST·First seen Sun, 26 Jul, 2026, 17:47 IST·Source Fortune India

What happened

Cushman & Wakefield · India retail leasing rose 17.6% YoY to 2.4 million sq ft in Q2 2026 as Grade A mall vacancies reached a five-year low of 5%. Domestic

Key facts

  • Q2 2026 gross retail leasing: 2.4 million sq ft, up 17.6% YoY and 23.2% QoQ
  • H1 2026 leasing: 4.35 million sq ft, up 3.1% YoY
  • Mall leasing: 1.23 million sq ft, 51.3% of total, up 33.4% QoQ and 21.9% YoY
  • Main-street leasing: 1.17 million sq ft, 48.7% of total, up 14% QoQ and 13.3% YoY
  • Grade A mall vacancy: 5%, down 163 basis points YoY, a five-year low
  • Prime high-street rents: up 2.1% QoQ and 5.1% YoY
  • Delhi NCR leasing: 0.67 million sq ft, 28% of total
  • Mumbai leasing: 0.50 million sq ft, 21% of total
  • Hyderabad leasing: 0.37 million sq ft, 15% of total
  • Domestic retailers: 1.98 million sq ft, 82.4% of leasing
  • International brands: 17.6% of leasing
  • Fashion share of demand: 28.2%
  • New retail supply scheduled for H2 2026: 1.6 million sq ft
  • Expected retail supply during 2026-2028: 12.7 million sq ft

Why this matters

Domestic retailers’ 82.4% share of leasing signals a deep local-brand pipeline for mall partnerships, acquisitions and platform expansion.

What to watch

  • Quarterly Grade A mall rent growth and renewal spreads in Delhi NCR, Mumbai and Hyderabad.
  • New mall completions, pre-leasing rates and construction-start announcements over the next 12-24 months.
  • Share of leasing from domestic versus international brands, especially whether overseas entrants return as a material demand source.
  • Retailer same-store sales growth, discretionary-consumption trends and store-closure announcements.
  • Interest rates, consumer credit conditions and organized-retail sales growth.
  • Movement in high-street vacancies, which could indicate demand spillover from constrained malls.
  • Domestic fashion, beauty, F&B, jewellery and value-retail chains accelerate store openings while locking in longer leases before rents rise further.
  • Mall owners prioritize tenant-mix upgrades, replacing lower-sales categories with experiential retail, food halls, entertainment and omnichannel-ready brands.
  • Retailers increase use of revenue-share lease structures and seek smaller, more productive formats where fixed rents become harder to absorb.
  • Developers advance Grade A mall pipelines in metro peripheries and affluent Tier 2 cities, targeting pre-leasing commitments from anchor tenants.

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