+
India retail leasing reaches 2.22 MSF in Q3 2026
Real Estate

India retail leasing reaches 2.22 MSF in Q3 2026

India’s retail real estate market recorded gross leasing volume (GLV) of 2.22 million sq ft (MSF) across the top eight cities in Q3 2026, according to Cushman & Wakefield’s Q3 Retail MarketBeat Report. Leasing declined 7.3 per cent quarter-on-quarter (QoQ) and 4.4 per cent year-on-year (YoY). Year-to-date (YTD) leasing stood at 6.57 MSF, up 0.4 per cent YoY.

Main streets accounted for 67.9 per cent of Q3 leasing at 1.51 MSF, with volumes increasing 29.3 per cent QoQ and 33.1 per cent YoY. Mall leasing accounted for the remaining 32.1 per cent at 0.71 MSF, down 42.1 per cent QoQ and 37.8 per cent YoY. The decline came amid continued constraints in the availability of quality mall space.

Domestic retailers accounted for 86.3 per cent of leasing at 1.92 MSF, while international retailers accounted for 13.7 per cent at 0.30 MSF.

Delhi NCR, Hyderabad and Mumbai together accounted for 61 per cent of quarterly leasing. Delhi NCR led with 0.55 MSF, followed by Hyderabad at 0.45 MSF and Mumbai at 0.35 MSF. Bengaluru recorded 0.24 MSF, Pune 0.21 MSF, Chennai 0.18 MSF, Ahmedabad 0.13 MSF and Kolkata 0.10 MSF.

Fashion leads category demand

Fashion remained the largest demand driver, accounting for 24.9 per cent of quarterly leasing, followed by F&B at 19.2 per cent and Accessories & Lifestyle at 13.1 per cent. Together, the three categories accounted for 57.2 per cent of leasing. Department Stores and Entertainment contributed 7.8 per cent and 7.5 per cent, respectively.

With no new Grade A mall supply added for the third consecutive quarter, Grade A mall vacancy declined by 20 basis points QoQ to 4.8 per cent from 5 per cent in Q2 2026.

Prime high-street rents increased by an average of 2.1 per cent QoQ and 6.8 per cent Y-o-Y. Rental growth was selective and location-specific, with Chennai’s Cathedral Road–RK Salai, Mumbai’s Linking Road, Chembur and Fort/Fountain, and Delhi NCR’s Khan Market recording some of the strongest YoY increases among the tracked high streets.

12.7 MSF supply expected

Around 12.7 MSF of Grade A mall supply is expected through 2028, which is expected to improve the availability of quality retail space. Delhi NCR is expected to lead the pipeline, followed by Bengaluru and Chennai. Around 1.35 MSF is projected for completion in 2026, with the remaining supply expected through 2028.

Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & Wakefield, said, “India’s retail market continues to demonstrate steady underlying occupier interest, even as quality retail space remains constrained. While leasing moderated during the quarter, year-to-date activity remains largely in line with last year, with a slight increase.”

He added that the festive period could provide an additional boost to consumption and retailer demand. “Grade A mall vacancy has tightened to below 5 per cent, underscoring the limited availability of quality space. Against this backdrop, the 12.7 MSF supply pipeline through 2028 comes at an important point in the market cycle,” Saraf said.

Milin Rohinesh, Head of Retail, India, Cushman & Wakefield, said retail demand remained broad-based, with fashion, F&B and lifestyle accounting for more than half of quarterly leasing. He added that newer concepts, expansion by home-grown brands and continued interest from international retailers were supporting demand, while limited availability of quality retail space continued to influence expansion.

City-wise performance
  • Ahmedabad: Leasing reached 0.13 MSF, up 18.6 per cent QoQ and 15.8 per cent Y-o-Y.
  • Bengaluru: Leasing stood at 0.24 MSF, down 3.8 per cent QoQ but up 39 per cent Y-o-Y.
  • Chennai: Leasing reached 0.18 MSF, down 8.7 per cent QoQ and up 12.1 per cent Y-o-Y.
  • Delhi NCR: Leasing stood at 0.55 MSF, down 17.7 per cent QoQ but up 7.9 per cent Y-o-Y.
  • Hyderabad: Leasing reached 0.45 MSF, up 22 per cent QoQ and 18.3 per cent Y-o-Y.
  • Kolkata: Leasing stood at 0.10 MSF, up 113.5 per cent QoQ and 68.8 per cent Y-o-Y.
  • Mumbai: Leasing reached 0.35 MSF, down 29.5 per cent QoQ and 40.8 per cent Y-o-Y.

India’s retail real estate market recorded gross leasing volume (GLV) of 2.22 million sq ft (MSF) across the top eight cities in Q3 2026, according to Cushman & Wakefield’s Q3 Retail MarketBeat Report. Leasing declined 7.3 per cent quarter-on-quarter (QoQ) and 4.4 per cent year-on-year (YoY). Year-to-date (YTD) leasing stood at 6.57 MSF, up 0.4 per cent YoY.Main streets accounted for 67.9 per cent of Q3 leasing at 1.51 MSF, with volumes increasing 29.3 per cent QoQ and 33.1 per cent YoY. Mall leasing accounted for the remaining 32.1 per cent at 0.71 MSF, down 42.1 per cent QoQ and 37.8 per cent YoY. The decline came amid continued constraints in the availability of quality mall space.Domestic retailers accounted for 86.3 per cent of leasing at 1.92 MSF, while international retailers accounted for 13.7 per cent at 0.30 MSF.Delhi NCR, Hyderabad and Mumbai together accounted for 61 per cent of quarterly leasing. Delhi NCR led with 0.55 MSF, followed by Hyderabad at 0.45 MSF and Mumbai at 0.35 MSF. Bengaluru recorded 0.24 MSF, Pune 0.21 MSF, Chennai 0.18 MSF, Ahmedabad 0.13 MSF and Kolkata 0.10 MSF.Fashion leads category demandFashion remained the largest demand driver, accounting for 24.9 per cent of quarterly leasing, followed by F&B at 19.2 per cent and Accessories & Lifestyle at 13.1 per cent. Together, the three categories accounted for 57.2 per cent of leasing. Department Stores and Entertainment contributed 7.8 per cent and 7.5 per cent, respectively.With no new Grade A mall supply added for the third consecutive quarter, Grade A mall vacancy declined by 20 basis points QoQ to 4.8 per cent from 5 per cent in Q2 2026.Prime high-street rents increased by an average of 2.1 per cent QoQ and 6.8 per cent Y-o-Y. Rental growth was selective and location-specific, with Chennai’s Cathedral Road–RK Salai, Mumbai’s Linking Road, Chembur and Fort/Fountain, and Delhi NCR’s Khan Market recording some of the strongest YoY increases among the tracked high streets.12.7 MSF supply expectedAround 12.7 MSF of Grade A mall supply is expected through 2028, which is expected to improve the availability of quality retail space. Delhi NCR is expected to lead the pipeline, followed by Bengaluru and Chennai. Around 1.35 MSF is projected for completion in 2026, with the remaining supply expected through 2028.Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & Wakefield, said, “India’s retail market continues to demonstrate steady underlying occupier interest, even as quality retail space remains constrained. While leasing moderated during the quarter, year-to-date activity remains largely in line with last year, with a slight increase.”He added that the festive period could provide an additional boost to consumption and retailer demand. “Grade A mall vacancy has tightened to below 5 per cent, underscoring the limited availability of quality space. Against this backdrop, the 12.7 MSF supply pipeline through 2028 comes at an important point in the market cycle,” Saraf said.Milin Rohinesh, Head of Retail, India, Cushman & Wakefield, said retail demand remained broad-based, with fashion, F&B and lifestyle accounting for more than half of quarterly leasing. He added that newer concepts, expansion by home-grown brands and continued interest from international retailers were supporting demand, while limited availability of quality retail space continued to influence expansion.City-wise performanceAhmedabad: Leasing reached 0.13 MSF, up 18.6 per cent QoQ and 15.8 per cent Y-o-Y.Bengaluru: Leasing stood at 0.24 MSF, down 3.8 per cent QoQ but up 39 per cent Y-o-Y.Chennai: Leasing reached 0.18 MSF, down 8.7 per cent QoQ and up 12.1 per cent Y-o-Y.Delhi NCR: Leasing stood at 0.55 MSF, down 17.7 per cent QoQ but up 7.9 per cent Y-o-Y.Hyderabad: Leasing reached 0.45 MSF, up 22 per cent QoQ and 18.3 per cent Y-o-Y.Kolkata: Leasing stood at 0.10 MSF, up 113.5 per cent QoQ and 68.8 per cent Y-o-Y.Mumbai: Leasing reached 0.35 MSF, down 29.5 per cent QoQ and 40.8 per cent Y-o-Y.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Madhya Pradesh Plans Airport Every 150 Km, Airstrip Every 75 Km

The Madhya Pradesh government plans to establish an airport every 150 km, an airstrip every 75 km and a helipad every 45 km, according to the state aviation department. Airports being developed in Ujjain and Shivpuri are expected to take the state’s airport count to 10. The government stated that Madhya Pradesh currently has eight airports in eight cities. The locations named by the department include Indore, Bhopal, Jabalpur, Gwalior, Khajuraho, Rewa and Satna. The state also has more than 20 airstrips and 220 helipads, while permanent helipads are planned in all 230 Assembly constituencies..

Next Story
Infrastructure Transport

West Bengal Plans Four Airports for 2028 Completion Under UDAN

West Bengal will develop four new airports under an agreement signed between the Union Civil Aviation Ministry and the state government, with all facilities targeted for completion by 2028. Union Civil Aviation Minister K Rammohan Naidu said the airports would be located at Charra in Purulia, Kalaikunda in Paschim Medinipur, Balurghat in Dakshin Dinajpur and Hasimara in Alipurduar. The project is part of the Centre’s regional connectivity UDAN programme. The Union government has committed Rs. 290 bn for West Bengal’s aviation sector over the next decade, while the state government will pro..

Next Story
Infrastructure Transport

Mumbai Airport Bars Russian Airlines as Agent Seeks Ministry Intervention

Mumbai airport has stopped accepting cargo booked on Russian flag carrier Aeroflot, disrupting shipments and prompting the airline’s cargo sales agent, Delmos Aviation, to seek intervention from the Ministry of Civil Aviation. The restrictions also affect cargo booked on Volga-Dnepr Airlines, according to a letter submitted by Delmos Aviation to the ministry on September 30. Aeroflot operates daily flights between Moscow and Delhi and runs a winter seasonal service to Goa. Bonded cargo from Mumbai and other cities is transported by road to Delhi before being flown to Russia. The agent said t..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code