Retail Space Leasing Dips Amidst Supply Crunch

Retail space leasing in top cities fell 15% in Q1 2026 to 3.1 million sq ft due to lower supply. Despite this, demand is strong with an institutional-grade pipeline of 46.1 million sq ft planned through 2030. Fashion leads retailer categories, while entertainment shows significant growth.

Retail leasing across major Indian cities experienced a 15% decline in the first quarter of 2026, reaching 3.1 million square feet, as per JLL India's recent report. This drop was primarily driven by a lack of fresh supply following a significant infusion in the previous quarter.

JLL India's head of Office Leasing & Retail Services, Rahul Arora, highlighted an institutional-grade retail pipeline of 46.1 million square feet planned through 2030, indicating continued demand outpacing supply, driven by rising consumption and D2C physical migration.

The retail market saw Indian retailers holding a 79% share of transactions, with fashion leading retailer categories. Entertainment showed notable growth, securing the second spot ahead of Food & Beverage.