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Fashion and apparel brands accounted for 40% of retail leasing across India's major cities during the first half of 2026, according to CBRE India's latest Retail Figures report. The segment remained the largest contributor to retail space absorption as domestic and international brands continued to expand their physical store networks. Strong consumer demand, rising mall occupancy and sustained retailer confidence supported leasing activity, with premium malls and high streets emerging as preferred expansion destinations.
India's organised retail real estate market recorded strong leasing momentum during the first half of 2026, with fashion and apparel brands accounting for 40% of total retail leasing across the country's leading cities, according to CBRE India's Retail Figures H1 2026 report. The segment emerged as the largest occupier of retail space, underlining sustained consumer demand and the continued expansion of both domestic and international fashion retailers across premium shopping destinations.
The report indicates that retailers remained focused on expanding their physical presence despite the rapid growth of e-commerce, reflecting the continued importance of experiential shopping and omnichannel retail strategies. Fashion and apparel brands led new store openings, followed by categories such as food and beverages, lifestyle products, beauty and wellness, jewellery, consumer electronics and home furnishings, all of which contributed to healthy leasing activity during the six-month period.
Premium shopping malls and established high streets continued to attract the majority of leasing transactions. Retailers preferred locations offering strong consumer footfall, superior connectivity and a well-established tenant mix, enabling them to strengthen brand visibility and improve customer engagement. The sustained demand for quality retail space also encouraged developers to maintain healthy occupancy levels across organised retail assets.
The report noted that India's retail sector continued to benefit from rising disposable incomes, favourable demographic trends and increasing urban consumption. As consumer spending strengthened across metropolitan markets, retailers accelerated expansion plans by opening new outlets, enlarging existing store networks and entering previously untapped micro-markets. International brands also maintained their interest in India, viewing the country as a long-term growth market supported by a large and evolving consumer base.
CBRE observed that the retail market's performance was supported by the increasing adoption of omnichannel business models. Rather than viewing digital and physical retail as competing platforms, brands continued integrating online sales with brick-and-mortar stores to provide customers with seamless shopping experiences. Physical outlets increasingly serve as experience centres, fulfilment hubs and brand engagement spaces alongside traditional retail functions.
City-wise leasing activity remained broad-based, with major metropolitan markets including Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai, Pune and Kolkata witnessing continued retailer expansion. Organised retail developments in these cities benefited from improving infrastructure, rising residential catchments and growing commercial activity, factors that have enhanced their attractiveness for retailers seeking long-term growth.
Industry experts believe the continued dominance of the fashion and apparel segment reflects changing consumer preferences and increasing demand for branded products. Domestic retailers have continued expanding into new markets, while several global brands have accelerated their India strategies through company-owned outlets, franchise partnerships and larger flagship stores in premium retail destinations.
The report also suggests that organised retail leasing is likely to remain resilient through the remainder of 2026 as developers add high-quality retail supply and brands continue investing in physical expansion. Stable economic growth, increasing urbanisation and evolving consumer lifestyles are expected to sustain demand for modern retail formats across India's major cities.
The strong contribution of fashion and apparel brands during the first half of the year highlights the sector's central role in India's retail real estate market. With retailers continuing to prioritise high-quality shopping destinations and omnichannel growth strategies, organised retail leasing is expected to remain on a positive trajectory in the coming quarters.
Source- CBRE
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