India’s Organised Retail Real Estate Surges 20% in H1 2026 Driven by Fashion and Regional Expansion

During the first half of 2026, India's organized retail real estate sector experienced strong momentum, with total gross leasing jumping 20% year-on-year to approximately 3.9 million square feet. According to a report by CBRE, this upward trajectory was propelled by resilient demand across various segments—most notably fashion, apparel, food and beverage, entertainment, and jewelry—even amidst global macroeconomic headwinds. Delhi-NCR dominated the supply side by contributing all 0.9 million square feet of newly operational retail space during this period. The expansion was particularly pronounced in fashion and apparel, which commanded roughly 40% of overall space absorption through the rapid growth of department stores, athleisure, and mid-tier brands. The growth story extended beyond top metropolitan hubs, as retailers made aggressive inroads into Tier-II locations such as Chandigarh, Jaipur, and Kochi, primarily driven by fashion brands. Domestic companies and direct-to-consumer (D2C) players emerged as the core drivers of space demand, accounting for over 70% and 28% of total leasing activity, respectively. Looking ahead, ongoing infrastructure developments—such as expanded metro lines and ring roads—are set to broaden consumer catchments and boost regional connectivity. This trend, combined with shopping centers increasingly adopting experience-driven and mixed-use spaces, continues to attract sustained institutional investment and solidify the sector's long-term outlook. $PHOENIXLTD $DLF $PRESTIGE