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Leasing activity in India's organised retail real estate market increased by 18% year-on-year to 2.4 million sq ft during the April–June quarter across eight major cities, according to Cushman & Wakefield. The growth was driven by retailers expanding their physical presence despite limited availability of quality retail assets. High streets accounted for nearly half of the total leasing activity at 1.17 million sq ft, while fashion retailers remained the largest occupiers, followed by food and beverage brands. The consultant noted that constrained supply has resulted in lower vacancies and firmer rentals across key retail destinations, with additional retail developments expected to improve space availability in the coming quarters.
Leasing of retail spaces across shopping malls and high streets rose 18% year-on-year to 2.4 million sq ft during the April–June quarter across eight major Indian cities, reflecting sustained expansion by retailers despite limited availability of quality retail assets, according to property consultancy Cushman & Wakefield.
The consultant reported that gross leasing reached 2.4 million sq ft during the second quarter of 2026, compared with 2.04 million sq ft in the corresponding period last year. The assessment covers the organised retail markets of Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad.
High streets continued to account for the largest share of leasing activity during the quarter. According to the report, these locations recorded 1.17 million sq ft of transactions, representing 48.7% of the total leasing volume. The performance highlights continued occupier preference for established high street retail destinations alongside organised shopping malls.
Among retail segments, fashion brands remained the largest contributors to leasing activity, accounting for 28.2% of the total space absorbed during the quarter. Food and beverage (F&B) operators followed with a 17.2% share, reflecting continued expansion by restaurant chains, cafés and quick-service restaurants across major urban markets.
The entertainment segment accounted for 10.8% of leasing activity, while accessories and lifestyle brands contributed a further 10%, indicating broad-based demand across multiple retail categories.
Commenting on the market, Gautam Saraf, Executive Managing Director, Mumbai & New Business at Cushman & Wakefield, said India's retail real estate sector continued to demonstrate strong underlying consumer demand. He stated that occupiers had shown a willingness to compete for well-located retail assets despite the limited availability of quality space in both premium shopping malls and established high streets.
Saraf added that constrained supply has contributed to lower vacancy levels, stronger rental values and sustained leasing momentum across major retail markets. He further noted that the gradual addition of new organised retail developments, together with continued growth in consumer spending, is expected to improve the availability of quality retail space and provide retailers with additional opportunities to expand their physical footprint in the coming quarters.
The latest leasing figures indicate that retailers continue to prioritise physical store expansion across India's leading urban centres, with demand remaining resilient across both mall-based developments and high street locations despite supply constraints in the organised retail real estate market.
Source - PTI
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