Retail Leasing Hits 4.3 Mn Sq Ft in H2 2025: ANAROCK RELEAP 2026

14 Apr 2026 CW Team

The report highlights a structural shift in the sector as organised retail moves beyond transactional formats toward experience-led spaces that combine shopping, entertainment and dining. Apparel emerged as the leading category driving leasing demand during the period, followed by entertainment, hypermarkets/supermarkets, and food and beverages, indicating growing consumer preference for engagement-driven retail destinations.

“India's retail real estate story is entering its most exciting chapter yet,” said Anuj Kejriwal, CEO – Retail & CEO – EMEA, ANAROCK Group. He added that the market is increasingly focused on delivering experiences that consumers cannot replicate online.

The report noted that mid-sized store formats between 1,000 and 5,000 sq ft continued to dominate transactions, reflecting retailer preference for scalable and efficient store footprints amid cost pressures and expansion plans.

On the supply front, Delhi NCR and Hyderabad together are expected to contribute nearly 70% of the upcoming retail supply, underlining strong developer confidence in these high-growth markets. ANAROCK said the development pipeline also indicates a broader pivot toward destination-format malls and mixed-use projects that integrate retail with entertainment, dining and wellness offerings.

RELEAP 2026 also pointed to stronger traction in high-street leasing during H2 2025. Key high-street micro-markets across cities witnessed rental appreciation, supported by limited availability of premium mall inventory. With vacancy levels in Grade A malls remaining tight, several brands—particularly in fashion, luxury and F&B—are increasingly turning to high streets to maintain expansion momentum.

In comparison, mall rentals remained largely stable, with selective growth in top-performing Grade A assets. The report added that sustained demand, improving consumption trends and a robust development pipeline position India’s retail real estate sector for continued growth in the near to medium term.

India’s retail real estate market recorded a total retail absorption of around 4.3 million sq ft across the top seven cities in H2 2025, reflecting steady leasing activity despite a dynamic market environment, according to ANAROCK Retail’s flagship report, RELEAP 2026.The report highlights a structural shift in the sector as organised retail moves beyond transactional formats toward experience-led spaces that combine shopping, entertainment and dining. Apparel emerged as the leading category driving leasing demand during the period, followed by entertainment, hypermarkets/supermarkets, and food and beverages, indicating growing consumer preference for engagement-driven retail destinations.“India's retail real estate story is entering its most exciting chapter yet,” said Anuj Kejriwal, CEO – Retail & CEO – EMEA, ANAROCK Group. He added that the market is increasingly focused on delivering experiences that consumers cannot replicate online.The report noted that mid-sized store formats between 1,000 and 5,000 sq ft continued to dominate transactions, reflecting retailer preference for scalable and efficient store footprints amid cost pressures and expansion plans.On the supply front, Delhi NCR and Hyderabad together are expected to contribute nearly 70% of the upcoming retail supply, underlining strong developer confidence in these high-growth markets. ANAROCK said the development pipeline also indicates a broader pivot toward destination-format malls and mixed-use projects that integrate retail with entertainment, dining and wellness offerings.RELEAP 2026 also pointed to stronger traction in high-street leasing during H2 2025. Key high-street micro-markets across cities witnessed rental appreciation, supported by limited availability of premium mall inventory. With vacancy levels in Grade A malls remaining tight, several brands—particularly in fashion, luxury and F&B—are increasingly turning to high streets to maintain expansion momentum.In comparison, mall rentals remained largely stable, with selective growth in top-performing Grade A assets. The report added that sustained demand, improving consumption trends and a robust development pipeline position India’s retail real estate sector for continued growth in the near to medium term.

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