India’s Retail Real Estate Leasing Surges to Three-Year High in 2026

India’s retail real estate sector hit a three-year high in 2026, driven by a significant rebound in leasing activity across major cities as both domestic and international brands expanded their physical store networks. According to market data, gross leasing volumes rose sharply year-on-year to reach about 12.5 million square feet, marking the strongest annual performance since before the pandemic era. Retailers showed renewed confidence in the value of brick-and-mortar space, reflecting rising consumption and optimism about long-term demand trends.

Domestic players accounted for the bulk of leasing activity, underlining robust uptake by Indian retailers across segments such as fashion, food and beverage, jewellery and beauty. At the same time, 29 new foreign brands entered India in 2025 — the highest number in recent years — signalling growing interest from global retailers in India’s organised retail market.

Direct-to-consumer (D2C) brands also contributed meaningfully to the expansion, increasing their physical store presence and driving demand for quality retail space, particularly in cities such as Delhi-NCR, Bengaluru and Hyderabad. These top markets together accounted for a large share of the year’s total leasing.

The sector’s momentum was supported by significant new supply, including roughly 6.3 million square feet of added retail space and the launch of around 15 new shopping centres in key metros. Analysts say this combination of rising supply and strong retailer interest points to a healthy retail real estate landscape, even as broader economic uncertainties persist.