Leasing of retail space in shopping malls fell 38 per cent to 0.71 million square feet in July-September across eight major cities due to supply constraints, according to Cushman & Wakefield. Data from real estate consultant Cushman & Wakefield showed that gross leasing of retail space in high-street locations rose 33 per cent to 1.51 million sq ft in the third quarter of the 2026 calendar year.

The eight cities are -- Mumbai, Delhi-NCR, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.

Including shopping malls and high-street locations, total retail space leasing fell nearly 5 per cent to 2.22 million square feet in the latest September quarter from 2.33 million sq ft in the year-ago period.

High street retail locations dominated leasing activities in the September quarter of 2026, accounting for 68 per cent of the total gross leasing. The share of shopping malls stood at 32 per cent of overall leasing.

Of the eight cities, leasing activities were down only in Mumbai and Pune. The remaining six cities showed an upward trend.

Despite a fall in the September quarter, total leasing of retail spaces rose marginally to 6.57 million sq ft in the January-September period.

Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & Wakefield, said, "India's retail market continues to demonstrate steady underlying occupier interest, even as quality retail space remains constrained".

He noted that total leasing activities during the January-September period rose, even as the eight cities did not witness any opening of new shopping malls.

The limited availability of premium retail space is increasingly influencing the pace of leasing, he said. On the supply side, he said vacancy levels in Grade A malls have tightened to below 5 per cent.

"Against this backdrop, the 12.7 million sq ft supply pipeline through 2028 comes at an important point in the market cycle. As this stock enters the market, it should create greater headroom for brands to expand and could unlock demand currently constrained by limited options," Saraf said.

Commenting on the report, Shriram PM Monga, co-founder at property consultancy firm SRED Global, said, "When quality mall space is scarce, retailers naturally turn to high streets, and this quarter's numbers show that clearly".

"For NCR retailers, high streets are no longer simply a second choice. With Grade A mall vacancy at just 4.8 per cent, a well-located high-street store can offer brands strong visibility and direct access to consumers, and the best addresses are being priced accordingly.

"This dynamic could evolve as NCR leads the 12.7 MSF of new Grade A mall supply expected through 2028," he said.

Monga noted that malls and high streets would work alongside each other rather than competing.

"For brands, the practical approach is increasingly about having the right mix - high streets for visibility and everyday footfall, and malls for scale and a more complete consumer experience," he advised.

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