Retail space take-up rises 19% despite cautious consumer sentiment: Report

Delhi-NCR, Mumbai and Hyderabad together accounted for over 69 per cent of the leasing

India’s retail real estate market recorded 5.8 million sq. ft. of space absorption in the first nine months of 2026, up 19 per cent year-on-year, according to CBRE. Delhi-NCR, Mumbai and Hyderabad accounted for 67 per cent of the total leasing, while 1.8 million sq. ft. of new retail supply was added during the period.

In the July-September quarter, retail space absorption stood at 2 million sq. ft., supported by 0.9 million sq. ft. of new supply. Delhi-NCR, Mumbai and Hyderabad together accounted for over 69 per cent of the leasing, with fashion and apparel and food and beverage retailers leading demand.

Leasing Share

With limited availability of quality space in prime locations, secondary and peripheral areas are expected to emerge as key retail destinations, driven by the pipeline of Grade A malls and improving infrastructure. This is also likely to spur the development of new high streets across these markets, said Ram Chandnani, Managing Director, Leasing Services, India, CBRE.

Fashion and apparel retailers accounted for 39 per cent of the total leasing during the first nine months of 2026. Domestic retailers led occupier activity, accounting for 73 per cent of leasing, followed by brands from Europe, the Middle East and Africa (EMEA) at 11 per cent.

Published on October 28, 2026