Gross leasing activity moderates during Q2 2026

• Gross leasing of 0.14 mn sq ft was recorded in Q2 2026. Retailer demand declined by 21% y-o-y and 57% q-o-q due to lack of supply. Suburbs accounted for 53% of total demand, while Prime Others and Prime City contributed 34% and 13% to leasing, respectively.
• Fashion & Apparel and F&B emerged as the leading contributors to retail space take-up, accounting for 38% and 20% of gross leasing activity, respectively, followed by Jewellery brands. High streets continued to dominate leasing activity, capturing 60% volume.

No new supply was added during the quarter

• Kolkata recorded no new mall completions during the quarter. Consequently, the city’s total mall stock remained stable at 6.5 mn sq ft.
• Mall vacancy declined by 80 basis points to 14.3% during the quarter. The Prime Others submarket continued to record the lowest vacancy at 8.4%, followed by the Prime City submarket at 10.0%.

Significant increase in mall rentals

• Rising demand for quality retail spaces in shopping malls was instrumental in driving rental growth upwards. Average mall rent for vanilla stores in Kolkata reached INR 191.7 per sq ft per month, up 15% y-o-y and 12% q-o-q.
• The Prime Others submarket recorded the strongest annual rent growth at 6% y-o-y, propelled by Kolkata’s most premium malls, including South City Mall and Quest Mall. The Prime City submarket also saw a 3% annual rent increase during the period.

Outlook: Retailer interest is expected to remain stable in the coming quarters

• One additional mall with 0.3 mn sq ft of space is expected to be completed in Joka (Suburbs) in 2026. This upcoming development is likely to attract strong retailer interest, as it will be a significant addition in organised retail in the catchment area.
• Retail leasing is expected to remain steady in the coming quarters. Vacancy is likely to decline over the next 12 months amid rising demand. Sustained rental growth is expected to continue in the mid-term.