Resurfacing H1 2026 data: India retail leasing hit a four-year H1 high as mall supply tightened

Gross retail leasing across India’s top seven cities rose 10.5% year-on-year to 6.27 million sq ft in H1 2026 (period ended June 2026), while new mall supply fell 64%. Domestic retailers drove 79.1% of activity, pushing vacancy down to 11.15%.

— FiledMon, 3 Aug, 2026, 17:35 IST·First seen Mon, 3 Aug, 2026, 17:34 IST·Source ET Small Business

What happened

JLL India · India’s top-seven-city retail leasing reached a four-year H1 high of 6.27 million sq ft as domestic retailer expansion outpaced constrained mall

Key facts

  • Top-seven-city gross leasing rose 10.5% YoY to 6.27 million sq ft in H1 2026
  • New mall supply fell 64% YoY to 0.82 million sq ft
  • Q2 leasing rose 2.7% sequentially to 3.18 million sq ft from 3.09 million sq ft in Q1
  • Domestic retailers accounted for 79.1% of leasing
  • Mall stock stood at 92 million sq ft
  • Vacancy fell 45 bps YoY to 11.15%
  • Malls represented 43.1% of leasing versus 38.9% a year earlier
  • Mall leasing grew 22.4% YoY
  • Mumbai accounted for 29%, Delhi NCR 24%, and Bengaluru 23% of leasing
  • Kolkata leasing rose 87.3% YoY; Delhi NCR 75.9%; Mumbai 69.6%
  • International-brand leasing rose 62.1% YoY
  • 45.5 million sq ft of mall space is under construction

Why this matters

Domestic brands driving 79.1% of leasing signals a deeper pipeline of expansion-ready retail partners, making mall alliances, franchise deals and strategic investments increasingly attractive.

What to watch

  • Quarterly mall vacancy and effective-rent movements in Mumbai, Delhi NCR and Bengaluru.
  • Pre-leasing levels and construction starts for new malls, redevelopments and mixed-use retail projects.
  • Whether domestic retailers maintain roughly 80% of leasing demand or international brands re-enter aggressively.
  • High-street leasing growth relative to mall leasing, especially in affluent catchments.
  • Consumer discretionary spending, retailer same-store sales and store closure rates.
  • Financing availability and approval timelines for retail real-estate development.
  • Secure long-duration leases and renewal options in top-performing malls before rent resets accelerate.
  • Prioritize store productivity, omnichannel fulfilment capability and landlord co-investment over headline store-count growth.
  • Build a parallel pipeline of high-street, mixed-use and redevelopment locations to reduce dependence on scarce mall inventory.
  • Use smaller-format, experience-led and shop-in-shop concepts to enter prime centres with limited available space.
  • Negotiate expansion rights, exclusivity clauses and phased fit-out commitments in under-construction projects.

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