Indian Organised Retail Leasing Up 20% in H1 2026

India’s organized retail real estate market expanded significantly in the first half of 2026, with gross leasing rising 20% year-on-year to nearly 3.9 million sq. ft. Despite global geopolitical tensions and inflationary pressures, retailer demand remained high, driven heavily by fashion and apparel, which made up about 40% of total leasing. Other key contributors included food and beverage (14%), entertainment (9%), jewelry, homeware, and consumer electronics. Total operational space grew by 0.9 million sq. ft. during the January–June period, with Delhi-NCR capturing all of the newly added supply. The expansion was marked by aggressive growth in Tier-II cities like Chandigarh, Jaipur, and Kochi, where fashion brands drove over 60% of local leasing activity. Domestic players dominated the space absorption by contributing over 70% of total leasing, with direct-to-consumer (D2C) brands playing a prominent role at 28%. According to CBRE, the momentum is set to continue as new Grade-A developments, upgraded infrastructure, and experience-focused retail formats further solidify India's status as a leading global retail destination.