Retail Space Leasing Slumps 15 Percent in Q1 Across Seven Major Cities: JLL Report

Retail Leasing in Top Seven Cities Falls 15% in January-March

Gross leasing of retail spaces in malls and high streets declined by 15 per cent in the first quarter of 2026 to 3.1 million square feet across the top seven cities, compared to the previous quarter, according to JLL India. The decline was attributed to lower fresh supply, which stood at 0.25 million sq ft in the March quarter, significantly lower than the 2.5 million sq ft of institutional-grade quality mall supply that entered the market in the fourth quarter of 2025.

The gross leasing data for retail spaces in shopping malls, high streets, and prime retail developments was released by real estate consultant JLL India on Tuesday. When compared to the fourth quarter of 2025, the gross leasing stood at 3.6 million sq ft across seven major cities, including Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune. However, when compared to the year-ago period, the gross leasing was flat in the March quarter.

The quarterly moderation in retail leasing is largely due to the absence of sizeable new mall supply of institutional grade quality. JLL India explained that the strong mall infusion of 2.5 million sq ft in Q4 2025, led to a significant decrease in fresh supply in the following quarter.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Indian retailers continued to dominate the market, with a 79 per cent share of the quarterly volume, driven by expansion from Direct-to-Consumer (D2C) brands. The fashion & apparel segment maintained its historical dominance of retailer categories, with a 33 per cent share, while entertainment emerged as the quarter's breakout performer with a 16 per cent share. Food & Beverage followed closely with a 15 per cent share.

According to Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL, the current market conditions suggest that India is witnessing not just resilience, but the foundation for India's next retail real estate expansion cycle driven by rising consumption, D2C physical migration, and retailer format sophistication. With a 46.1 million sq ft institutional-grade pipeline through 2030 and demand consistently outpacing supply, the market is expected to continue its growth trajectory.