Strong retailer activity pushes leasing by 1.8 times q-o-q

• Q1 2026 leasing surged 1.8 times q-o-q, with strong activity across both malls and high streets. Domestic and international retailers, especially in luxury, fashion, and beauty, showed growing interest.
• Net absorption reached 0.2 million sq ft in the quarter, driven by new leases in completed malls. While the Suburbs led leasing activity, Prime North’s Jio World Plaza recorded the most significant lease of Saks 5th Avenue.

No new mall completions in Q1 2026

• Mall stock was unchanged at 15.5 mn sq ft in Q1 2026 with no new completions during the quarter.
• Robust leasing in premium operational malls pushed vacancy down by 130 bps q-o-q to 7.9% at an overall level.

Rents continue to show moderate growth q-o-q

• Rents increased moderately q-o-q. However, Q1 2026 showed 6% rent growth y-o-y, reflecting sustained market momentum throughout the year.
• Prime South drove rent growth in Q1, recording the strngest increase across all submarkets. Strong investor demand for quality retail assets continued, with yields declining slightly.

Outlook: Experiential retail demand and quality supply in key markets are fueling brand expansion and new mall developments

•  Indian shoppers now shifted from transactional shopping venues to modern, experiential spaces for leisure with family and friends. Domestic and international brands are entering India, attracted by young demographics and changing lifestyles.
• Strong market sentiment and quality supply in Prime and Suburbs will drive retailer expansion, with new malls opening in key growth clusters across these submarkets and other strategic locations.