Fashion and apparel drive 20% growth in India's organised retail leasing in H1 2026
- IBEF
- July 30, 2026
India's organised retail real estate market recorded robust growth during the first half of 2026, with gross leasing rising 20% year-on-year to around 3.9 million sq. ft., reflecting sustained retailer expansion despite inflationary pressures and global uncertainties. According to a CBRE report, the growth was driven by strong demand from organised retail segments, particularly fashion and apparel, entertainment, jewellery and experience-led retail formats. Around 0.9 million sq. ft. of new retail space became operational during January-June 2026, with Delhi-NCR accounting for the entire new supply. Fashion and apparel remained the largest contributor to leasing activity, accounting for around 40% of total space absorption, supported by the expansion of department stores, mid-range fashion brands and athleisure retailers. The report also highlighted the continued growth of organised retail through upcoming Grade A developments and major infrastructure projects, including metro network expansions and ring roads, which are expected to improve connectivity and expand consumer catchment areas.
The Food and Beverage segment accounted for around 14% of leasing activity, followed by Entertainment (9%), while Jewellery and Homeware & Furnishings each contributed around 7%, and Consumer Electronics represented 6% of total leasing. Demand remained strong beyond metropolitan cities, with fashion and apparel retailers expanding aggressively into Tier-II markets, accounting for around 69% of leasing activity in Chandigarh and Jaipur and about 65% in Kochi. Domestic retailers contributed more than 70% of overall leasing activity during the period, while direct-to-consumer (D2C) brands accounted for around 28%. The report projects sustained institutional investment in organised retail real estate, with shopping malls increasingly adopting experience-led and mixed-use formats, reinforcing India's retail sector growth and enhancing the country's commercial real estate landscape.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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