Will India's retail leasing reach 11 million sq ft in 2026?
Synopsis
India's retail leasing is set to soar in the coming years, with projections reaching 11 million sq ft by 2026. As demand surges, the market is transforming, highlighting a shift towards quality spaces. Discover the driving forces behind this trend and what it means for the future of retail in India.
Key Takeaways
India's retail leasing is projected to hit 9 million sq ft by the end of 2025.
Demand for retail spaces is expected to soar to 10–11 million sq ft in 2026.
76% of the new mall supply will be Grade A+ assets.
High-street leasing remains steady amid mall expansion.
Fashion, food, and entertainment are key demand drivers.
New Delhi, Dec 23 (NationPress) India’s retail real estate sector is on track to conclude 2025 with 9 million square feet of leasing activities, a significant increase from 7.8 million square feet in 2024, marking the highest annual absorption since the pandemic, as reported on Tuesday.
The analysis from Cushman & Wakefield indicates that the retail leasing activity will gain further momentum in 2026, with total demand anticipated to be around 10–11 million square feet, fueled by better availability of premium mall spaces and the release of pent-up demand that has been hindered by limited supply.
The pipeline for malls in 2026 is projected to encompass approximately 5.9 million square feet, with about 76 percent of these expected to be Grade A+ properties, enhancing options for retailers in cities like Bengaluru, Chennai, Mumbai, and Hyderabad.
This new supply is likely to alleviate extreme vacancy tightness and foster a healthier growth phase characterized by expansion rather than space limitations, according to the report.
High-street leasing, which gained traction during the mall shortage, is expected to maintain stability in 2026 as mall absorption improves.
“The significant rise in 2025 highlights the pivotal role of new completions in unlocking pent-up demand and driving absorption to historic highs. With a solid pipeline for 2026, the market is transitioning into a phase of substantial capacity growth aimed at higher-quality retail formats,” stated Gautam Saraf, Executive Managing Director, Mumbai & New Business at Cushman & Wakefield.
The report forecasts that new deliveries in 2025 will reach approximately 4.3 million square feet, a sharp rise from 0.9 million square feet of Grade A mall completions in 2024, aided by completions in the last quarter, which will ease scarcity but not entirely bridge the gap created over the last two years.
Demand drivers in 2025 included fashion, food & beverage, and entertainment.
Additionally, the report indicated that premiumization is expected to intensify in 2026, bolstered by a more extensive pipeline of global brand introductions, partnerships, and the supply of high-quality malls.
Point of View
The significant growth in India's retail leasing reflects a resilient market responding to evolving consumer needs. Cushman & Wakefield's insights illustrate a dynamic landscape driven by quality and demand, signaling optimism for both retailers and consumers. As the market matures, it becomes crucial to monitor these trends as they unfold.
NationPress
12 May 2026
Frequently Asked Questions
What is the projected retail leasing for India in 2026?
India's retail leasing is expected to reach approximately 10–11 million square feet in 2026.
What factors are driving the growth in retail leasing?
The growth is driven by improved availability of quality mall spaces and the release of pent-up demand.
Which cities are expected to see the most growth?
Cities like Bengaluru , Chennai , Mumbai , and Hyderabad are expected to benefit from this growth.
What is the status of high-street leasing?
High-street leasing is expected to remain stable in 2026, even as mall absorption improves.
What sectors are driving demand in 2025?
The primary demand drivers in 2025 include fashion , food and beverage , and entertainment .
