Fashion brands emerged as the largest occupiers of retail space in Delhi-NCR during the first half of 2026, accounting for 28% of total retail leasing across malls and high streets, according to a report by Cushman & Wakefield.
Overall retail leasing across malls and high streets in Delhi-NCR increased 78% year-on-year to 1.3 million sq. ft. during January-June 2026. Shopping malls recorded the strongest growth, with leasing activity doubling compared to the same period last year, while high street leasing rose 4%.
The report said fashion retailers recorded the highest increase in leased space compared with the first half of 2025.The momentum was also evident in the first quarter of 2026, when fashion brands accounted for 32% of total mall leasing, ahead of entertainment (16%) and department stores (14%). Leasing by fashion retailers in malls also increased 75% year-on-year during the quarter.
Among the notable leasing transactions in Q1 2026, H&M leased 9,162 sq. ft. at Felix Plaza in New Gurgaon, while Lifestyle leased 49,483 sq. ft. at Unity One Elegante in Netaji Subhash Place. The Loom took 2,528 sq. ft. at Ambience Mall, NH-8, and Mothercare leased 1,500 sq. ft. on Rajouri Garden’s main street.
Strong demand from fashion retailers also tightened vacancy levels across premium retail destinations. During Q1 2026, malls accounted for 64% of Delhi-NCR’s retail leasing activity, with Gurugram leading the market with a 54% share, followed by Delhi (26 %) and Noida (20%). Grade A malls reported a vacancy rate of 7.9%, while Grade A+ malls maintained an exceptionally low vacancy of around 1%, indicating sustained demand for premium retail space.
The latest trend builds on the momentum seen in the first half of 2025, when CBRE reported that fashion and apparel brands accounted for 35 %of the 500,000 sq. ft. of retail space leased in Delhi-NCR. Overall retail leasing had increased 25% year-on-year during that period, supported by the addition of 300,000 sq. ft. of new mall supply, compared with no new mall supply in the first half of 2024.
