Stories
Retail Leasing Hits 2.22 MSF in Q3; Delhi-NCR, Hyderabad Lead Demand as Mall Vacancy Falls Below 5%
N
News18•05-10-2026, 13:34
Retail Leasing Hits 2.22 MSF in Q3; Delhi-NCR, Hyderabad Lead Demand as Mall Vacancy Falls Below 5%
- •India's retail real estate market saw 2.22 MSF in gross retail leasing across top eight cities in Q3 2026, a 7.3% decline from the previous quarter.
- •Main streets outperformed malls, accounting for 67.9% of total leasing (1.51 MSF), while mall leasing declined significantly.
- •Delhi-NCR led retail leasing with 0.55 MSF, followed by Hyderabad at 0.45 MSF, with both cities driving demand.
- •Fashion, F&B, and Accessories & Lifestyle collectively contributed 57.2% of total retail leasing, with domestic retailers dominating 86.3% of expansion.
- •Grade A mall vacancy dropped to 4.8% in Q3 due to limited new supply, with 12.7 MSF of new mall space expected by 2028.
Key Questions Answered
Gross retail leasing across India's top eight cities reached 2.22 million square feet (MSF) in Q3 2026, marking a 7.3% decline from the previous quarter and a 4.4% drop year-on-year.
Fashion remained the top contributor at 24.9% of total leasing, followed by food and beverage (F&B) at 19.2% and accessories and lifestyle at 13.1%. Meanwhile, domestic retailers dominated expansion by accounting for 86.3% or 1.92 MSF of total leasing.
Grade A mall vacancy dropped to 4.8% due to three consecutive quarters of no new supply additions. At the same time, high streets outperformed malls by capturing 67.9% of total leasing volume, accompanied by a 2.1% quarter-on-quarter increase in prime high-street rents.
