India’s retail leasing jumps 20% in H1 2026 as fashion brands lead expansion

India’s retail leasing market defied economic challenges in the first half of 2026, recording a 20 per cent year-on-year rise. The leasing activity reached around 3.9 million square feet, even as inflation concerns and geopolitical uncertainties kept businesses cautious.According to a CBRE report, continued retailer expansion supported growth, with upcoming Grade A retail developments and infrastructure projects potentially driving further expansion into suburban and emerging areas.The report expects organised retail real estate to continue growing across sectors, led by fashion and apparel, entertainment, jewellery and experience-driven retail formats.In the January-June period, nearly 0.9 million square feet of new retail supply became operational, with Delhi-NCR accounting for all of them.With around 40 per cent of total space take-up, Fashion & Apparel remained the biggest contributor, Food & Beverage accounted for around 14 per cent, and Entertainment about nine per cent.Jewellery and Homeware & Furnishings had a share of around seven per cent each, followed by Consumer Electronics at six per cent.As per CBRE, fashion and apparel retail demand was stronger outside the major metropolitan cities, accounting for nearly 69 per cent in both Chandigarh and Jaipur, and about 65 per cent in Kochi.Domestic retailers reportedly formed more than 70 per cent of leasing activity in H1, while direct-to-consumer (D2C) brands contributed around 28 per cent of overall leasing.Additionally, according to the report, institutional investment in organised retail real estate is expected to remain strong, with malls focusing on experience-led formats and mixed-use developments to engage consumers."Major infrastructure projects, including expanding metro networks and ring roads, could accelerate this trend by broadening geographic catchments and improving consumer access," the report said.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.