India’s Retail Leasing Grows 10.5% in H1 2026 Despite Supply Constraints: JLL report
Mumbai, Aug. 4 (TNT): India’s retail real estate sector recorded a 10.5 per cent year-on-year increase in gross leasing during the first half of 2026, despite constrained supply of quality retail spaces, according to a report released by real estate consultancy JLL.
The report said gross leasing across the country’s top seven cities reached 6.27 million sq. ft. during January-June 2026, up from 5.68 million sq. ft. in the corresponding period last year, making it the highest half-yearly leasing volume recorded in the past four years.
Mumbai, Delhi NCR and Bengaluru accounted for more than 75 per cent of the total leasing activity during the period, with Mumbai contributing 29 per cent, Delhi NCR 24 per cent and Bengaluru 23 per cent, the report revealed.
Commenting on the findings, Saket Amrit, Head-Retail Services, India, JLL, said the sector continues to witness resilient growth despite global headwinds and rising retail inflation, driven by strong domestic consumption and retailer expansion plans.
He added that India’s shopping mall stock has reached around 92 million sq. ft., with over 45 million sq. ft. of new mall space expected to become operational by 2030.
The report stated that domestic retailers accounted for 79.1 per cent of the total gross leasing during H1 2026, while leasing by established international brands increased 62.1 per cent year-on-year.
Although new shopping mall supply declined 64 per cent year-on-year to 0.82 million sq. ft., healthy demand pushed shopping mall vacancy levels down from 11.60 per cent to 11.15 per cent, reflecting sustained occupier interest in organised retail spaces, it said.
Among retail categories, fashion and apparel remained the largest contributor to leasing activity with a 33 per cent share, followed by food and beverage (18 per cent) and entertainment (16 per cent).
The entertainment segment recorded a 41.5 per cent year-on-year increase in space take-up, driven by family entertainment centres, while leasing by the daily needs and grocery segment declined 39 per cent, largely due to the rapid expansion of quick commerce and dark stores.
JLL said the robust development pipeline and continued expansion by domestic and international retailers position India’s organised retail sector for sustained long-term growth despite near-term supply constraints.
TNT TS
