Retail Leasing Touches 3.1 Million sq ft in Q1 2026

13 May 2026 CW Team

Healthy demand also led to a 40-basis point drop in mall vacancy levels, with overall vacancy reducing from 12.3% in the previous quarter to 11.9%. JLL attributed the quarterly moderation largely to the absence of sizeable new mall supply following a strong 2.5 million sq ft infusion in Q4 2025. Only 0.25 million sq ft of new mall supply was added in Q1 2026, taking total retail stock to 92.4 million sq ft.

“India’s retail sector is navigating a pivotal transition with remarkable agility. First quarter’s 3.1 million sq. ft leasing, anchored by a 48% high street surge and domestic retailers commanding 79% market share, reflects strategic format diversification as supply constraints drive innovation,” said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.

With limited mall supply, high streets emerged as the leading leasing format, accounting for 48% of transactions, while malls contributed 40%. Mumbai led leasing activity with a 26% share, followed by Bengaluru and Delhi NCR at 21% each. Together, the three cities accounted for 68% of total leasing. Kolkata captured 10%, while Hyderabad, Chennai and Pune contributed 9%, 7% and 6% respectively.

Fashion and apparel continued to dominate category demand, while entertainment emerged as the second-largest segment with a 16% share. Food and beverage followed at 15%, reflecting sustained expansion by restaurant and café operators.

Domestic retailers contributed 79% of total leasing, driven by strong activity from D2C brands. International retailers also recorded a 48% year-on-year rise in leasing, supported by India’s growing consumption demand.

JLL noted that a 46.1 million sq ft institutional-grade pipeline is expected between 2026 and 2030, positioning India’s retail market for a major growth cycle over the coming years.

India’s retail sector recorded steady demand in Q1 2026, with gross leasing reaching 3.1 million sq ft across the top seven cities, according to JLL. While leasing activity moderated 15% quarter-on-quarter due to limited new institutional-grade mall supply, it still posted a marginal 1% year-on-year rise, indicating continued resilience in retailer expansion.Healthy demand also led to a 40-basis point drop in mall vacancy levels, with overall vacancy reducing from 12.3% in the previous quarter to 11.9%. JLL attributed the quarterly moderation largely to the absence of sizeable new mall supply following a strong 2.5 million sq ft infusion in Q4 2025. Only 0.25 million sq ft of new mall supply was added in Q1 2026, taking total retail stock to 92.4 million sq ft.“India’s retail sector is navigating a pivotal transition with remarkable agility. First quarter’s 3.1 million sq. ft leasing, anchored by a 48% high street surge and domestic retailers commanding 79% market share, reflects strategic format diversification as supply constraints drive innovation,” said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.With limited mall supply, high streets emerged as the leading leasing format, accounting for 48% of transactions, while malls contributed 40%. Mumbai led leasing activity with a 26% share, followed by Bengaluru and Delhi NCR at 21% each. Together, the three cities accounted for 68% of total leasing. Kolkata captured 10%, while Hyderabad, Chennai and Pune contributed 9%, 7% and 6% respectively.Fashion and apparel continued to dominate category demand, while entertainment emerged as the second-largest segment with a 16% share. Food and beverage followed at 15%, reflecting sustained expansion by restaurant and café operators.Domestic retailers contributed 79% of total leasing, driven by strong activity from D2C brands. International retailers also recorded a 48% year-on-year rise in leasing, supported by India’s growing consumption demand.JLL noted that a 46.1 million sq ft institutional-grade pipeline is expected between 2026 and 2030, positioning India’s retail market for a major growth cycle over the coming years.

Infrastructure Transport

13 Jul 2026

Bhogapuram Airport Set For Take Off After Licence Issued

Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu announced that Alluri Sitharama Raju Bhogapuram International Airport has achieved 100 per cent completion following issuance of its aerodrome licence by the Ministry of Civil Aviation after an inspection with public representatives, district officials and GMR Group representatives. The licence was granted after extensive verification over the past month to ensure that safety and operational standards were met. The Chief Minister's Office has already contacted the Prime Minister's Office to finalise an inauguration date and commercial fli..

Infrastructure Urban

13 Jul 2026

Auto Sector To Grow 22-24 Per Cent In Q1 FY27

Credit Rating Information Services of India (Crisil) estimated that India's automobile sector is expected to report revenue growth of 22-24 per cent year-on-year in the first quarter of FY27 and to be among the largest contributors to corporate revenue growth in the quarter. The agency estimated overall corporate revenue to have grown 11-11.5 per cent year-on-year in the quarter ended 30 June 2026, the fastest pace in two years despite supply chain disruptions and higher input costs from the West Asia conflict. This compared with growth of 9.6 per cent in the preceding quarter. Crisil said the..

Infrastructure Urban

13 Jul 2026

Nomura Sees Q1 Pressure On Cement Margins; Backs Major Players

Nomura said cement margins will be under pressure in the June quarter as fuel and packaging costs rose, although volume growth is expected to remain healthy. The brokerage forecast six to seven per cent year-on-year organic volume growth for the Indian cement industry in the period, with Shree Cement identified as likely to post the highest growth at 15 per cent year-on-year. It noted that the West and North regions outperformed on pricing, aiding companies with greater exposure in those markets. Average trade prices improved three per cent sequentially to around Rs 326 per bag after price inc..