Retail Demand Surges in NCR, but Supply Crunch Looms Large
Delhi-NCR Leads India's Retail Real Estate Market with 43% Year-on-Year Leasing Increase
Delhi-NCR has emerged as the top-performing retail real estate market in India, recording a sharp 43 percent year-on-year increase in leasing during the January–March quarter. This significant growth underscores a strong revival in consumption and retailer expansion.
According to data from Cushman & Wakefield, retail leasing in NCR stood at 0.59 million sqft in Q1 2026, up from 0.41 million sqft a year ago. The region alone accounted for around 30 percent of total leasing activity across India’s top eight cities, making it the largest contributor during the quarter.
Comparison of Retail Leasing Activity Across India's Top Eight Cities
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| City | Q1 2026 Leasing (sqft) | Q1 2025 Leasing (sqft) | Year-on-Year Change |
|---|---|---|---|
| Delhi-NCR | 0.59 million | 0.41 million | 43% |
| Mumbai | 0.35 million | 0.38 million | -8% |
| Bengaluru | 0.28 million | 0.30 million | -7% |
| Hyderabad | 0.22 million | 0.25 million | -12% |
| Pune | 0.15 million | 0.18 million | -17% |
| Chennai | 0.12 million | 0.14 million | -14% |
| Kolkata | 0.08 million | 0.10 million | -20% |
| Other cities | 0.26 million | 0.29 million | -10% |
The strong performance in NCR comes even as overall retail leasing across India’s top eight cities declined 10 percent year-on-year to 1.95 million sqft, largely due to supply constraints.
Market observers said that this divergence highlights NCR’s resilience, driven by superior demand fundamentals and a deeper base of consumption-led growth. The report underscores that India’s retail sector is currently operating in a demand-led environment, where occupier interest continues to outpace supply of quality assets. Fashion and food & beverage (F&B) brands emerged as key demand drivers, with expanding domestic players and increasing participation from international retailers.
Developers in the region are responding to the growing demand, but creating Grade-A retail assets takes time, resulting in a supply-demand mismatch. As a result, vacancy levels are declining, and selective rental growth is being observed across prime high streets. Market observers said that the combination of strong consumption, limited Grade-A supply, and evolving retail strategies is likely to sustain leasing momentum in NCR.
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Investor Takeaway
Investors should consider the retail real estate market in NCR, which is showing strong signs of revival.
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