India’s retail leasing map shifts: Delhi NCR leads in Q3, Hyderabad gains on Mumbai

India’s retail real estate market continued to see active demand in the July-September quarter, with Delhi NCR, Hyderabad and Mumbai emerging as the country’s biggest markets.

According to Cushman & Wakefield’s Q3 2026 Retail MarketBeat report, the gross leasing volume (GLV) reached 2.22 million square feet (MSF) across the top eight cities. The three leading markets – Delhi NCR, Hyderabad and Mumbai – together accounted for 61% of the total activity.

Here's a look at leasing activity in different cities:

• Delhi NCR led the pack, with 0.55 MSF of leasing, accounting for 24.9% of the total. However, leasing fell 17.7% from the previous quarter, while remaining 7.9% higher than a year earlier.
• Hyderabad followed with 0.45 MSF and a 20.3% share. Unlike Delhi NCR, the city saw leasing rise 22% quarter-on-quarter and 18.3% year-on-year, making it the fastest-growing among the three major markets.
• Mumbai ranked third, with 0.35 MSF and a 15.7% share. Leasing declined 29.5% sequentially and 40.8% from a year earlier.
• Across the remaining markets, Bengaluru recorded 0.24 MSF of leasing, followed by Pune at 0.21 MSF, Chennai at 0.18 MSF, Ahmedabad at 0.13 MSF and Kolkata at 0.10 MSF.

“Looking ahead, approximately 12.7 MSF of Grade A mall supply is expected through 2028, gradually improving the availability of quality retail space across key markets. The pipeline will be led by Delhi NCR, followed by Bengaluru and Chennai, with approximately 1.35 MSF projected for completion in 2026 and the remaining supply expected through 2028.”

A peek at category-wise demand

• Fashion continued to lead retail leasing demand, accounting for 24.9% of total activity in the quarter.
• Food & Beverage (F&B) followed with a 19.2% share, while Accessories & Lifestyle contributed 13.1%.
• Together, these three segments made up 57.2% of overall leasing.
  
• Department Stores and Entertainment also remained significant, accounting for 7.8% and 7.5%, respectively.

Speaking about the trends, Gautam Saraf, Executive Managing Director – Mumbai & New Business, Cushman & Wakefield,“India’s retail market continues to demonstrate steady underlying occupier interest, even as quality retail space remains constrained. While leasing moderated during the quarter, year-to-date activity remains largely in line with last year, with a slight increase."

This is despite three consecutive quarters without new Grade A mall supply, indicating that limited availability is increasingly influencing the pace of leasing, he added