Retail Space Leasing in Delhi-NCR Jumps 78% in First Half of 2026: Cushman & Wakefield
New Delhi, August 27, 2026: Retail space leasing across malls and high streets in Delhi-NCR surged 78% year-on-year to reach 1.3 million square feet during the January-June 2026 period, according to a report by Cushman & Wakefield. Fashion brands led the absorption with a 28% share, followed by food and beverage operators at 16% and department stores at 12%. Mall leasing doubled year-on-year while high-street leasing rose 4%, reflecting a strategy among retailers to balance flagship destination formats with broader neighborhood footprints.
Geographically, Gurugram emerged as the most active market, capturing 45% of NCR’s second-quarter leasing volume due to its concentration of Grade A office spaces and affluent residential clusters. Delhi accounted for 44% of leasing activity, driven by established markets and high-density spending catchments, while Noida comprised the remaining 11%. Overall market fundamentals showed a clear flight to quality, with Grade A mall vacancies dropping to 6%, compared to 13% in Grade B+ properties.
Industry executives noted that retail expansion across the capital region has become increasingly analytical. Shyamrup Roy Choudhury, Founder and Managing Director of Aura World, stated that the current leasing momentum shows that brands are becoming more disciplined about their physical expansion, noting that companies are evaluating catchment quality, access, parking, frontage, and tenant adjacencies rather than relying on visibility alone. He added that Gurugram performs well on these parameters due to its mix of office workers, affluent residents, and leisure-led visitors, while areas such as Sohna continue to attract interest backed by infrastructure upgrades.
The growth pattern highlights both the revitalization of mature urban centers and expansion into developing corridors. Pankaj Jain, Founder and CMD of SPJ Group, stated that the strong growth in retail leasing across NCR reflects growing confidence among brands in the region’s consumption potential, adding that companies are now exploring mature markets such as Old Gurugram where a consistent consumer base already exists. He emphasized that establishing organized retail in densely populated, established neighborhoods allows brands to tap into proven spending patterns if projects deliver accessibility, parking, and a strong brand mix.
The market surge is further supported by diverse retailer categories, including expanding national chains, new international entrants, and digital-first brands establishing physical footprints to support omnichannel distribution. Jatin Goel, Executive Director of Omaxe Group, observed that the rise in retail leasing reflects how the region’s consumption story is becoming more geographically broad-based, with retailers expanding beyond traditional strongholds into maturing markets such as Faridabad and Greater Noida. He noted that the next phase of retail development in NCR will be less about adding raw space and more about creating well-curated destinations tailored to specific local catchments.
