India Market Monitor Q2 2026 – Retail

India’s retail real estate leasing activity reached approximately 2.0 million sq. ft. in the April-June (Q2) quarter of 2026, taking total space absorption in H1 2026 to ~3.9 million sq. ft. Market momentum remained resilient despite inflationary pressures and supply-chain-related disruptions faced by select retailers amid the ongoing Middle East crisis.

Demand was led by Delhi-NCR, Hyderabad, and Mumbai, which together accounted for more than 60% of total activity during the quarter. Meanwhile, Delhi-NCR accounted for the entire H1 2026 supply addition of ~0.9 million sq. ft., following the operationalisation of Felix Plaza and DLF Midtown Plaza earlier in the year.

Building on the strong momentum witnessed in H1 2026, India's organised retail sector is expected to remain resilient through the remainder of the year. Supported by a robust pipeline of upcoming Grade-A supply, retail development is likely to expand further into peripheral and suburban corridors, reflecting a gradual decentralisation of growth.

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