Organised by the Confederation of Indian Industry (CII) under the theme “Building India’s Next Urban Decade: Real Estate as the Engine of Viksit Bharat,” the event brought together industry leaders and policymakers to discuss investment, housing affordability, regulatory reforms and sustainable urban development.
The report was released in the presence of the Guest of Honour, Dr Bhuvnesh Pratap Singh, Director, Department of Promotion of Industry and Internal Trade, Government of India, Abhinav Joshi - Head of Research for India, Middle East, and North Africa, CBRE and Ashwinder R Singh, Chairman, CII NR Committee on Real Estate and Vice Chairman & CEO, BCD Group
Amid inflationary pressures, cautious consumer sentiment and limited supply, retailers focused on calibrated expansion, long-term store performance and profitability. Additionally, Delhi-NCR, Mumbai and Hyderabad accounted for approximately 67% of the total space take-up. Approximately 1.8 mn sq. ft. of new retail supply was added during 9M 2026, led by Delhi-NCR and Mumbai.
For the July-September (Q3) 2026 quarter, retail space take-up stood at ~2.0 mn sq. ft., supported by ~0.9 mn sq. ft. of new supply. Delhi-NCR, Mumbai and Hyderabad collectively contributed over 69% of leasing, with Fashion & Apparel and F&B leading occupier demand.
“India’s retail real estate market continues to demonstrate resilience, with retailers balancing expansion plans against evolving consumer sentiment and business priorities. Leading markets remain central to leasing activity, while brands are increasingly focused on store productivity, location quality and experience-led formats. As retailers refine their expansion strategies, the availability of suitable retail spaces and the ability to create differentiated shopping experiences will remain important considerations for sustained market growth,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, MENA, CBRE.
Cities driving growth
Delhi-NCR led retail space absorption during 9M 2026, with approximately 1.9 mn sq. ft. leased, followed by Mumbai at around 1 mn sq. ft. and Hyderabad at approximately 0.9 mn sq. ft.Fashion and apparel brands led leasing activity during this period, accounting for 39% of the total. Domestic retailers accounted for the largest share of leasing at 73%, followed by EMEA-based brands at 11%. Continued store expansion, modernisation and interest in experience-led formats supported demand.
New supply additions
India added approximately 1.8 mn sq. ft. of new retail space during 9M 2026, led by Delhi-NCR with around 1.3 mn sq. ft. and Mumbai with approximately 0.5 mn sq. ft. of fresh supply. Key additions included DLF Midtown Plaza, DLF Summit Plaza and Felix Plaza in Delhi-NCR, alongside the Outlet Mall of India in Bhiwandi, Mumbai.Leasing is expected to remain healthy through the rest of the year, with fashion & apparel being the largest demand driver. Café chains and restaurants are expected to lead F&B growth, along with firm demand from traditional jewellers, lab-grown diamond retailers and entertainment operators.
“With limited availability of quality space in prime locations, secondary and peripheral locations are expected to emerge as major retail destinations, driven by the Grade A mall pipeline and improving infrastructure. This is also likely to catalyse the development of new high streets across these markets, said Ram Chandnani, Managing Director, Leasing Services, India, CBRE.
Industry perspectives at CII REALTY 2026
Addressing the gathering, Ashwinder R Singh, Chairman, CII Northern Region Committee on Real Estate and Vice Chairman & CEO, BCD Group, said “India’s real estate market, valued at approximately US$500 billion, is projected to reach US$1 trillion by 2030. Achieving this would require the sector to add around US$125 billion in value annually. Four priorities will be key to achieving this growth: strengthening domestic capital, linking demand to employment, maintaining development discipline and expanding access to housing. Institutional investment rose 23% to US$4.3 billion in the first half of the year, with domestic institutions accounting for a record 64% share. REIT market capitalisation has crossed US$20 billion across six listed REITs, growing more than six-fold since the first listing. India also leased a record 82.6 million sq. ft. of office space last year, with Global Capability Centres accounting for close to two-fifths of demand. However, homes priced below ₹50 lakh saw sales fall 23% in the first quarter, while affordable housing accounted for just 6% of new launches in the previous quarter. Widening access to first homes and home loans will be vital to ensuring inclusive growth.”Dr Bhuvnesh Pratap Singh, Director, Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, highlighted “India has taken several steps to improve the ease of doing business, including reducing more than 47,000 compliance requirements. The relaxation of Floor Area Ratio norms in certain unplanned areas also creates opportunities for development beyond established metropolitan centres. Simpler building-plan approvals, less repetitive documentation and fewer unnecessary inspections are important to improving regulatory efficiency. Industry should propose specific, practical reforms, while greater use of AI, digitisation and startup-led solutions can further support this process. India aims to reduce the cost of regulation by 70–80% by 2036 through digitisation and automation. As the country progresses towards Viksit Bharat 2047, it is important to ensure that development remains inclusive.”
