India’s Retail Leasing Rises 19% Year-On-Year to 5.8 Million Square Feet in 9M 2026: Study
New Delhi, October 29, 2026: India’s retail real estate market recorded approximately 5.8 million square feet of space absorption during the first nine months of 2026, registering a year-on-year increase of around 19 percent, according to a press release issuing a report by CBRE Research and the Confederation of Indian Industry (CII).
The report was released at the 22nd Edition of the CII Realty 2026 event. Delhi-NCR, Mumbai, and Hyderabad accounted for approximately 67 percent of the total space take-up during the nine-month period, while about 1.8 million square feet of new retail supply was added, led by Delhi-NCR and Mumbai. For the July-September (Q3) 2026 quarter, retail space take-up stood at approximately 2.0 million square feet, supported by 0.9 million square feet of new supply. Domestic retailers dominated demand, holding a 73 percent share of leasing, with fashion and apparel brands leading space take-up at 39 percent.
“India’s retail real estate market continues to demonstrate resilience, with retailers balancing expansion plans against evolving consumer sentiment and business priorities,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, MENA, CBRE. “Leading markets remain central to leasing activity, while brands are increasingly focused on store productivity, location quality and experience-led formats. As retailers refine their expansion strategies, the availability of suitable retail spaces and the ability to create differentiated shopping experiences will remain important considerations for sustained market growth.”
“With limited availability of quality space in prime locations, secondary and peripheral locations are expected to emerge as major retail destinations, driven by the Grade A mall pipeline and improving infrastructure,” said Ram Chandnani, Managing Director, Leasing Services, India, CBRE.
Addressing the event, Ashwinder R Singh, Chairman, CII Northern Region Committee on Real Estate and Vice Chairman & CEO, BCD Group, stated, “India’s real estate market, valued at approximately US500billion,isprojectedtoreachUS500 billion, is projected to reach US500billion,isprojectedtoreachUS1 trillion by 2030. Achieving this would require the sector to add around US$125 billion in value annually. Four priorities will be key to achieving this growth: strengthening domestic capital, linking demand to employment, maintaining development discipline and expanding access to housing.”
Dr Bhuvnesh Pratap Singh, Director, Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, noted that the country aims to reduce regulatory costs through automation, stating, “India aims to reduce the cost of regulation by 70–80% by 2036 through digitisation and automation. As the country progresses towards Viksit Bharat 2047, it is important to ensure that development remains inclusive.”
