Fashion Brands Account for 28% of Delhi-NCR Retail Leasing in H1 2026

Retail leasing rises 78% year-on-year as fashion retailers drive demand across malls and high streets

Fashion brands emerged as the largest occupiers of retail space in Delhi-NCR during the first half of 2026, accounting for 28% of total retail leasing across shopping malls and high streets, according to a report by Cushman & Wakefield.

Overall retail leasing across Delhi-NCR reached 1.3 million sq. ft. between January and June 2026, representing a 78% year-on-year increase. The growth was led by shopping malls, where leasing activity more than doubled compared to the corresponding period last year, while high street leasing recorded a modest 4% increase.

The report highlighted that fashion retailers registered the strongest growth in leased space among all retail categories compared with the first half of 2025, reinforcing the sector’s continued expansion across premium retail destinations.

Fashion Leads Mall Leasing Activity

The momentum was already visible during the first quarter of 2026, when fashion brands accounted for 32% of total mall leasing, ahead of the entertainment segment at 16% and department stores at 14%.

Leasing activity by fashion retailers in shopping malls increased 75% year-on-year during the quarter, reflecting sustained demand from both domestic and international brands seeking premium retail locations.

Major Fashion Leasing Transactions

Several prominent fashion retailers expanded their physical presence across Delhi-NCR during the period.

Key leasing transactions included:

• H&M leasing 9,162 sq. ft. at Felix Plaza, New Gurgaon.
• Lifestyle taking 49,483 sq. ft. at Unity One Elegante, Netaji Subhash Place.
• The Loom leasing 2,528 sq. ft. at Ambience Mall on NH-8.
• Mothercare opening a 1,500 sq. ft. store on Rajouri Garden’s main street.

These transactions contributed to the strong absorption of retail space across established shopping destinations.

Premium Retail Spaces See Lower Vacancies

Robust leasing activity from fashion retailers also reduced vacancy levels across premium retail assets.

During the first quarter of 2026:

• Shopping malls accounted for 64% of total retail leasing activity.
• Gurugram led the market with a 54% share of leasing.
• Delhi followed with 26%.
• Noida accounted for the remaining 20%.

Grade A malls reported a vacancy rate of 7.9%, while Grade A+ malls maintained an exceptionally low vacancy level of approximately 1%, indicating sustained demand for high-quality retail spaces.

Growth Builds on 2025 Momentum

The latest figures continue the positive trajectory observed during the first half of 2025.

According to an earlier report by CBRE, fashion and apparel brands accounted for 35% of the 500,000 sq. ft. of retail space leased across Delhi-NCR during H1 2025.

Overall retail leasing had increased 25% year-on-year during that period, supported by the addition of 300,000 sq. ft. of new shopping mall supply, compared with no new mall completions in the first half of 2024.

The continued expansion of fashion retailers, combined with limited premium retail availability, indicates sustained confidence in Delhi-NCR’s retail real estate market as brands strengthen their offline presence alongside omnichannel growth strategies.