Home / Business and Economy / India Retail Leasing Hits 4-Year High Amid Supply Crunch
India Retail Leasing Hits 4-Year High Amid Supply Crunch
3 Aug
Summary
- Gross leasing reached 6.27 million sq ft, a four-year high in H1 2026.
- New mall supply decreased by 64%, widening the demand-supply gap.
- Domestic retailers drove 79.1% of leasing, boosting occupier demand.
India's organized retail real estate market demonstrated strong resilience during the first half of 2026. Gross leasing volumes across the top seven cities reached 6.27 million sq ft, marking a four-year high. This growth occurred despite a substantial 64% reduction in new shopping mall supply, which fell to 0.82 million sq ft.
Sustained consumer demand and retailer expansion were key factors in maintaining leasing activity. Domestic retailers were the predominant force, contributing 79.1% of the total gross leasing. This surge in demand resulted in a decline in shopping mall vacancies, which dropped to 11.15% by the end of the first half of 2026.
Looking ahead, developers have substantial plans, with approximately 45.5 million sq ft of new shopping mall space slated for completion by 2030 across the top seven cities. This pipeline indicates a focus on differentiated, experience-led retail formats to meet evolving consumer expectations and ensure long-term growth for the sector.
