India’s retail sector is undergoing a transformation, where the duration of a visit is gaining importance alongside the physical space occupied. The expansion of organized retail in major cities is driven by consumers seeking a blend of shopping, dining, entertainment, and social experiences.
Leasing Trends
During the first half of 2026, leasing activity in India’s top seven cities reached 6.27 million square feet, marking a 10.5% increase compared to the previous year. Shopping malls played a significant role, accounting for 43.1% of total leasing, up from 38.9% in the same period in 2025.
The Delhi NCR region is emerging as a key player, driven by a growing consumer base and a preference for organized retail formats. In the second quarter of 2026, the region recorded approximately 0.67 million square feet of retail leasing, reflecting a 13% quarterly increase and a 20% annual growth, with malls contributing 63% of the leasing activity.
Noida’s Growth
Noida emerged as a significant contributor to NCR’s retail leasing in the first quarter of 2026, accounting for around 20% of the total. As of September 2025, the city boasted approximately 8.1 million square feet of mall inventory, with 30% classified as Grade A+.
In the first nine months of the year, Noida’s retail leasing reached nearly 0.37 million square feet, driven primarily by fashion and food and beverage sectors. As the organized retail market matures, new developments have the opportunity to differentiate themselves through strategic tenant selection, design innovation, and enhanced customer experiences.
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Experience-Driven Retail
Modern mall visits offer a diverse range of activities, allowing consumers to combine dining, shopping, entertainment, and socializing in a single trip. This integration creates multiple opportunities for retailers to engage customers and support brand discovery.
Events, pop-up stores, and lifestyle activities further encourage repeat visits, making the duration of a visit a critical factor in retail strategy. The overall experience within a mall significantly impacts customer engagement and loyalty, influencing the tenant mix to adapt to evolving consumption patterns.
In the second quarter of 2026, fashion accounted for 28.2% of India’s retail leasing, followed by food and beverage at 17.2%, and entertainment at 10.8%. Leasing in these categories more than doubled compared to the previous year, highlighting their growing importance.
Physical Retail Evolution
Digital-first companies are reshaping physical retail through innovative experiments, enhanced customer service, and immersive experiences powered by AI and omni-channel technologies. This shift is influencing mall design, emphasizing strong catchment areas, curated retail and hospitality offerings, entertainment, and public spaces.