Resurfacing a July 2026 report: India retail leasing rose 17.6% as Grade A mall vacancies hit five-year low
Per a July 2026 report resurfacing now, gross retail leasing reached 2.4 million sq ft in Q2 2026, led by Delhi NCR, Mumbai and Hyderabad. Domestic retailers accounted for 82.4% of demand, while Grade A mall vacancy fell to 5%, tightening premium space and supporting rent growth.
What happened
Cushman & Wakefield · India retail leasing reached 2.4 MSF in Q2 2026 as Grade A mall vacancies fell to a five-year low of 5%. Domestic brands drove 82.4% of
Key facts
- India gross retail leasing rose 17.6% YoY to 2.4 MSF in Q2 2026
- Leasing increased 23.2% QoQ
- H1 2026 leasing reached 4.35 MSF, up 3.1% YoY
- Mall leasing was 1.23 MSF, 51.3% of quarterly volume
- Main-street leasing was 1.17 MSF, 48.7% of quarterly volume
- Grade A mall vacancy fell 163 bps YoY to 5%, a five-year low
- Prime high-street rents rose 2.1% QoQ and 5.1% YoY
- Delhi NCR leased 0.67 MSF (28%), Mumbai 0.50 MSF (21%), Hyderabad 0.37 MSF (15%)
- Domestic retailers accounted for 82.4% of leasing, or 1.98 MSF
- Fashion represented 28.2% of demand
- 1.6 MSF of new retail space is scheduled for H2 2026
- 12.7 MSF of retail supply is due during 2026-2028
Why this matters
Strong domestic demand and constrained premium mall availability make early site partnerships, portfolio acquisitions and mixed-use development opportunities increasingly strategic.