According to Cushman & Wakefield, Delhi is expected to account for more than half of the upcoming mall supply in the National Capital Region (NCR) between 2026 and 2028.
NCR is expected to add around 7.1 million sq ft of organized retail space during this period, of which Delhi alone will contribute around 3.7 million sq ft (52%), followed by Gurugram at 2.6 million sq ft (37%) and Noida at 0.8 million sq ft (11%), the consultancy said.
Gautam Saraf, Executive Managing Director, Mumbai and New Business, Cushman & Wakefield, said, “Delhi is expected to have the largest share in the upcoming retail supply in NCR, driven by the completion and operation of large retail developments of approximately 3 million sq ft. Beyond the quantity of supply, the project is expected to further strengthen Delhi’s organized retail landscape and provide retailers with additional high-quality retail space in a market where quality supply is limited despite strong consumer demand.”
India’s retail real estate sector continued its growth momentum in Q2 2026, with gross leasing volume (GLV) rising to 2.4 million sq ft across the top eight cities, a report by Cushman & Wakefield said. This represents 23.2% quarter-on-quarter (QoQ) and 17.6% year-on-year (YoY) growth, reflecting strong occupier demand despite limited supply pipeline.
During the first half of 2026, total retail leases reached 4.35 million square feet, up 3.1% from the same period last year, underscoring the sector’s steady growth in key retail markets.
Nationally, Delhi NCR, Mumbai and Hyderabad emerged as the top retail leasing markets in the second quarter, accounting for 64% of the total leasing activity. Delhi NCR leads with 0.67 million sq ft (28%), followed by Mumbai with 0.50 million sq ft (21%) and Hyderabad with 0.37 million sq ft (15%). Bengaluru and Pune recorded 0.25 million sq ft each, followed by Chennai (0.20 million sq ft), Ahmedabad (0.11 million sq ft) and Kolkata (0.05 million sq ft).
Notably, no new Grade A malls came into operation for the second consecutive quarter. The report showed that despite the lack of fresh supply, mall leasing remained strong, driven by continued absorption in projects completed during the second half of 2025, highlighting retailers’ continued preference for organized retail destinations.
Also read: ₹309 crore”>Executive Center India has leased 1.14 lakh sq ft office space in Aerocity, Delhi for a net rent of 9 years. ₹309 crores
Malls account for more than half of the retail leasing operated by international brands
Malls accounted for 51.3% of India’s total retail leasing during the second quarter, with 1.23 million square feet of space leased, registering 33.4% quarter-on-quarter (QoQ) and 21.9% year-on-year (YoY) growth. The strong performance came despite limited availability of premium mall space and rising rents, which also prompted some retailers to explore select Grade B retail developments, the report showed.
Main streets continued to see healthy demand from occupiers, which accounted for the remaining 48.7% of leasing activity or 1.17 million sq ft. Although their share declined slightly, leasing volumes grew by 14% QoQ and 13.3% YoY, supported by demand for high-footfall, consumption-driven locations.
domestic retailers They remained the largest occupiers with 82.4% of the total lease (1.98 million sq ft), with more than half of their transactions taking place on high streets. In contrast, international brands contributed 17.6% (0.42 million sq ft) total leaseThe report notes that approximately 76% of their space is concentrated in malls, underscoring their preference for institutionally managed, high-quality retail destinations that offer curated consumer experiences.
Also read: ₹232 crore”>Lenskart leases 88,343 sq ft office space in Delhi’s Aerocity; Rental expense is estimated ₹232 crores
