Fashion & Apparel Leads India’s Retail Leasing in H1 2026: CBRE
Fashion & Apparel continued to dominate India’s retail leasing market during the first half of 2026, accounting for nearly 40% of total leasing activity, according to CBRE South Asia’s latest India Retail Figures H1 2026 report. Overall retail leasing reached approximately 3.9 million sq. ft. between January and June 2026, marking a 20% year-on-year increase, with nearly 2.0 million sq. ft. leased during the April-June quarter alone.
The report highlights that department stores, mid-market fashion retailers and athleisure brands were the primary drivers of leasing demand within the Fashion & Apparel segment.
According to CBRE, the sector is currently being shaped by two key trends. Athleisure brands are expanding beyond sportswear into everyday fashion, catering to consumers seeking versatile and comfort-focused clothing. At the same time, premiumisation continues to gather momentum as international fashion brands expand their presence across the Indian market.
To meet evolving consumer preferences, retailers are increasingly introducing hybrid apparel collections designed for professionals and Gen Z shoppers looking for multi-purpose wardrobes suitable for work, leisure and social occasions.
Commenting on the findings, Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & North Africa, CBRE, said:
“India’s retail story in H1 2026 reflects a market that is maturing, not just growing. Retailers today are making sharper, more considered choices about where and how they expand, and that discipline is exactly what is building a more resilient, long-term retail sector for the country.”
After Fashion & Apparel, Food & Beverage (F&B) accounted for around 14% of leasing activity, followed by Entertainment at 9%. Jewellery and Homeware & Furnishings each contributed approximately 7%, while Consumer Electronics represented around 6%. Hypermarkets, Health & Personal Care and Luxury brands also maintained a notable share of retail leasing demand.
The report indicates that leasing activity remained well diversified across retail categories, reflecting healthy demand from multiple business segments rather than reliance on a single sector.
Rami Kaushal, Managing Director, Consulting & Valuations, India, Middle East & Africa, CBRE, said:
“What stands out this half is how deliberately retailers are recalibrating their growth strategies: balancing new-market opportunities with the fundamentals of long-term viability. This shift in approach is a sign of a retail sector that is planning for the next decade, not just the next lease.”
Fashion & Apparel’s dominance was even more evident in emerging retail markets. The category accounted for nearly 69% of retail leasing in both Chandigarh and Jaipur, while contributing approximately 65% of leasing activity in Kochi during the first half of the year.
Looking ahead, CBRE expects fashion retailers to accelerate the adoption of artificial intelligence across their operations. Technologies such as generative AI-powered styling, personalised product recommendations and predictive inventory management are expected to help retailers optimise merchandising, forecast consumer demand more accurately and create a more seamless omnichannel shopping experience.
