NEW DELHI: India's retail real estate sector witnessed robust growth in the first half of 2026, with retail leasing increasing 20% year-on-year to nearly 3.9 million square feet across the country's major cities. The strong performance underscores sustained consumer demand and growing confidence among retailers despite inflationary pressures and global economic uncertainties.

Fashion and apparel brands emerged as the largest contributors to leasing activity, accounting for a significant share of new retail space absorption. The expansion was driven by both domestic and international brands seeking to strengthen their physical presence in premium shopping malls and high-street locations.

Industry experts attribute the surge in leasing to rising consumer spending, increasing urbanisation and the continued preference for experiential shopping. Retailers are also expanding their footprint to tap into demand from Tier I and emerging Tier II cities, supported by improving economic conditions and higher disposable incomes.

The strong leasing momentum reflects the resilience of India's retail sector and is expected to continue through the remainder of 2026, although developers and retailers continue to face challenges from limited supply of quality retail spaces in key markets.