Retail leasing continued to outstrip the supply of Grade A mall space across India's top seven cities in the first half of 2026, underscoring a persistent shortage of quality retail assets, property consultant Anarock said. Gross leasing of Grade A mall space stood at four point one million (mn) square feet during January to June 2026, against just zero point nine mn of new completions, implying retailers leased nearly four and a half times the space delivered. The imbalance followed a record 2025, when new Grade A mall supply reached five point two mn while leasing surged to 13 mn. Anarock said geopolitical uncertainty had delayed mall delivery and expansion decisions in H1 2026, and the firm's retail chief said the supply problem had been building for several years. Historical data showed that in 2023 the top seven cities added five point three mn of new supply against gross leasing of six point five mn, while in 2024 new supply fell to one point one mn and leasing remained at six point five mn. Both leasing and new mall supply eased from the levels seen in H1 2025, with leasing down 24 per cent year-on-year and new completions falling 57 per cent. Among the top seven markets, Delhi-NCR was the only one to add Grade A mall space in H1 2026, contributing around zero point nine mn, with leasing there of about one point two six mn. Anarock attributed the shortage to development complexity, including land availability, rising land costs, approval timelines, financing conditions and construction schedules. Vacancy in Grade A malls declined to six point seven per cent in H1 2026, while Grade B and C malls continued to report higher vacancies ranging from around eight per cent to thirty five per cent. The consultant said low vacancy and sustained retailer demand presented a significant opportunity for developers and institutional investors, but warned that without meaningful improvement in the supply pipeline retailers were likely to face longer wait times for prime locations and higher occupancy costs.