Retail leasing in Delhi NCR remains steady

• In Q1 2026, the retail sector’s gross leasing volume touched 0.65 million sq ft, led by the Prime Others (51%) and Suburbs (45%) submarkets. Demand for retail spaces in newly opened malls remained high and supported healthy net absorption of 0.25 million sq ft.
• Malls accounted for the majority of leasing volume in Delhi NCR, with fashion and apparel (40%), food & beverages (24%), and entertainment (17%) the dominant retailer categories.

No new supply in Q1 2026

• Delhi NCR’s mall stock remained unchanged at 28.6 million sq. ft. due to no new supply infusion. Vacancy levels declined by 88 basis points to 12.8% at the end of Q1 2026, supported by healthy take-up of retail spaces.
• In 2026, new supply of nearly 3 million sq. ft. is expected to become operational in the Suburbs and Prime Others submarkets, which will give a fillip to retailer expansion in locations such as Dwarka, Greater Noida, Ghaziabad and Gurgaon.

Capital values and rents increase during the quarter

• In Q1 2026, rents increased moderately by 0.9% q-o-q and 3.6% y-o-y, while capital values grew 1.8% q-o-q and 4.5% y-o-y.
• Prime Others posted the highest rental growth at 9.9% y-o-y, driven by higher rentals in multiple Grade A malls, which pushed the market average upwards. Prime South noted a 5.7% y-o-y rental appreciation amid no new supply.

Outlook: Strong supply pipeline to support leasing momentum

• A robust supply pipeline is expected to aid leasing momentum, with retailers actively occupying new spaces and expanding their presence in the growing peripheries of Gurgaon and Ghaziabad, as well as prime locations in the western and northern parts of Delhi.
• Demand for retail spaces from new foreign brands and the growing offline presence of D2C brands will define the retail space take-up in Delhi NCR. Additionally, retailers in value fashion, food and beverage and jewellery will continue to expand their presence in 2026.