Fashion & Apparel Retains Lead As India’s Top Retail Leasing Category In H1 2026
New Delhi, July 30, 2026: Fashion & Apparel maintained its position as India’s largest retail leasing category, capturing roughly 40 percent of total space take-up between January and June 2026, according to the latest India Retail Figures H1 2026 report by real estate services firm CBRE South Asia Pvt. Ltd. Overall retail leasing in the country expanded by 20 percent year-on-year during the first half of the year to reach approximately 3.9 million square feet, with the April–June quarter alone driving nearly 2.0 million square feet of the absorption.
Leasing within the Fashion & Apparel segment was primarily driven by department stores, mid-range fashion retailers, and athleisure brands. The report identifies two key trends shaping the category: athleisure broadening its footprint into everyday wear to fulfill consumer preference for comfort-focused, multi-occasion clothing, and an ongoing movement toward premiumization driven by the steady entry and expansion of global brands. To capture these shifts, retailers are increasingly allocating floor space to hybrid clothing lines designed for the multi-occasion lifestyles of working professionals and Gen Z shoppers, CBRE South Asia said in a press release.
Commenting on the market dynamics, Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & North Africa, CBRE, highlighted the industry’s evolving maturity: “India’s retail story in H1 2026 reflects a market that is maturing, not just growing. Retailers today are making sharper, more considered choices about where and how they expand, and that discipline is exactly what is building a more resilient, long-term retail sector for the country.”
While Fashion & Apparel led space absorption, demand remained broad-based across multiple retail sectors. Food & Beverage (F&B) followed with approximately 14 percent of total leasing, while Entertainment secured 9 percent. Jewellery along with Homeware & Furnishings each accounted for roughly 7 percent of leasing activity, followed by Consumer Electronics at 6 percent, with Hypermarkets, Health & Personal Care, and Luxury rounding out the remainder.
Reflecting on the strategic shifts across the industry, Rami Kaushal, Managing Director, Consulting & Valuations, India, Middle East & Africa, CBRE, noted: “What stands out this half is how deliberately retailers are recalibrating their growth strategies: balancing new-market opportunities with the fundamentals of long-term viability. This shift in approach is a sign of a retail sector that is planning for the next decade, not just the next lease.”
The dominance of Fashion & Apparel was even more striking in emerging markets outside major metropolitan centers. The category represented approximately 69 percent of total retail leasing in both Chandigarh and Jaipur, and roughly 65 percent in Kochi during the six-month period.
Looking ahead, CBRE projects that fashion retailers will accelerate the integration of artificial intelligence tools, including generative styling to tailor product layouts and fashion concepts, alongside predictive inventory management to forecast consumer demand and optimize stock levels, helping bridge online and physical store operations.
