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India Retail Leases Soar 19% Amidst Expansion
28 Oct
Summary
- India's retail market absorbed 5.8 million sq. ft. in nine months of 2026.
- Delhi-NCR, Mumbai, and Hyderabad lead leasing activity significantly.
- Fashion and apparel retailers drove 39% of leasing demand.
India's retail market demonstrated robust growth in the first nine months of 2026, with space absorption reaching 5.8 million sq. ft., a 19% increase from the previous year. A substantial 1.8 million sq. ft. of new retail space was introduced during the same period.
Key metropolitan areas including Delhi-NCR, Mumbai, and Hyderabad collectively accounted for 67% of the total leasing activity. These cities continue to be major hubs for retail expansion and consumer spending.
During the July-September quarter of 2026, absorption stood at 2 million sq. ft., supported by 0.9 million sq. ft. of new supply. Fashion and apparel retailers were the most active segment, making up 39% of all leases signed in the first nine months.
Domestic retailers spearheaded occupier activity, representing 73% of all leasing. International brands, particularly from Europe, the Middle East, and Africa, also contributed, accounting for 11% of the leasing demand.
