Mumbai, Nov. 2 -- India's retail real estate market recorded approximately 5.8 mn sq ft of space absorption during the first nine months of 2026, a year-on-year increase of about 19 per cent, according to a CBRE Research report released at the 22nd edition of CII Realty 2026 in New Delhi. The event focused on investment, housing affordability, regulatory reforms and sustainable urban development.

Delhi-NCR led leasing between January and September with approximately 1.9 mn sq ft, followed by Mumbai with around 1 mn sq ft and Hyderabad with about 0.9 mn sq ft. The three markets together accounted for approximately 67 per cent of total retail space absorption during the period.

India added around 1.8 mn sq ft of new retail supply in the first nine months, with Delhi-NCR contributing approximately 1.3 mn sq ft and Mumbai adding about 0.5 mn sq ft. During the July-September quarter, absorption stood at approximately 2 mn sq ft, supported by around 0.9 mn sq ft of new supply, while the three leading markets accounted for more than 69 per cent of leasing.

Fashion and apparel brands accounted for 39 per cent of leasing during the nine-month period, making them the largest source of occupier demand. Food and beverage operators also contributed to quarterly activity. Domestic retailers represented 73 per cent of leasing, while brands from Europe, the Middle East and Africa accounted for 11 per cent.

The report said retailers were pursuing calibrated expansion, store modernisation and experience-led formats amid inflationary pressures, cautious consumer sentiment and limited supply. New additions included DLF Midtown Plaza, DLF Summit Plaza and Felix Plaza in Delhi-NCR, as well as the Outlet Mall of India in Bhiwandi. Quality-space constraints in prime locations are expected to support secondary and peripheral markets, while cafe chains, restaurants, jewellers, lab-grown diamond retailers and entertainment operators are likely to add to future demand.

Published by HT Digital Content Services with permission from Construction World.