Bengaluru malls demonstrate robust leasing activity in Q2 2026 amid limited supply availability

• Bengaluru recorded 0.13 mn sq ft in mall leasing activity during the quarter, with transactions concentrated exclusively within the Suburbs submarket. Notable retailers securing space included Tesla, Collection of Style (COS), Barbeque Nation, and Next by Myntra.
• The city’s high streets maintained significant retailer demand, led primarily by Fashion & Apparel, Food & Beverage, and Home & Furnishing brands. Key retail brands active on high streets included Westside, Continuum, Livspace, and Grohe.

No new malls opened in Q2 2026

• Mall inventory remained stable at 14.4 million sq ft in the quarter, reflecting the absence of new supply additions to the market. Mall vacancy declined 88 basis points q-o-q, driven by robust leasing momentum.
• SBR Lucky Mall is expected to be operational in Q4 2026. Phoenix Market City Phase 2, Forum 13 Degree North, Forum Sarjapur Road, and Brigade Valencia will substantially strengthen the city’s retail stock landscape in the near-term.

Retail rentals and capital values grew marginally by 0.7% and 1.2% q-o-q, respectively

• Retail rents in Bengaluru have experienced minimal growth q-o-q, but driven primarily by the premium quality malls. In the other malls, the retailers’ strategic emphasis on well-established high street locations is constraining rental growth.
• Capital values across Bengaluru malls experienced a modest increase in Q2 2026, with high quality malls’ performance and investor interest in this segment supporting the trend.

Outlook: Bengaluru’s retail sector is projected to sustain growth, driven by rising demand and expanding supply

• Strong retailer demand is driving significant retail development across expanding suburbs along Sarjapur Road, Bellary Road, and Whitefield, addressing projected growth requirements.
• Fashion and Apparel, Food & Beverage, Jewellery, and Home and Furnishing sectors are anticipated to drive leasing activity, supported by strategic expansions from prominent international and domestic brands.