Retail leasing across India’s top eight cities reached 2.22 million sq ft in Q3 2026, down 7.3% from Q2 and 4.4% from a year earlier, according to Cushman & Wakefield’s quarterly retail report. High streets accounted for 67.9% of the quarter’s leasing and malls 32.1%.
This is a measure of space leased by retailers, not property sales, homebuyer demand or the return on any individual retail asset. That distinction matters when a national leasing headline is used to judge a mall or a high-street property.
What the Q3 number measures
Cushman & Wakefield reports gross leasing volume across eight major Indian markets. It recorded 6.57 million sq ft of leasing for the first three quarters of 2026, 0.4% above the comparable period a year earlier. The year-to-date figure was broadly stable even though the September quarter was lower year on year.
The mix also differed by format. High-street leasing was 1.51 million sq ft in Q3, while mall leasing was 0.71 million sq ft. The report attributes the high-street lead to prominent, high-visibility locations and describes quality mall space as constrained. Those are market-level observations; they do not establish that every street-front shop is easier to lease than space in a mall.
High-street and mall leasing moved differently
The reported 67.9% high-street share was supported by a 33.1% year-on-year rise in high-street leasing. Mall leasing fell 37.8% year on year and 42.1% quarter on quarter. Fashion, food and beverage, and accessories and lifestyle together made up 57.2% of quarterly leasing, while domestic retailers represented 86.3%.
The headline therefore describes both a softer quarter and a clear preference in the reported mix. It should not be compressed into “retail property is rising” or “mall demand is falling” without the format, period and location attached.
City mix and vacancy need their own scope
Delhi NCR, Hyderabad and Mumbai together accounted for 61% of Q3 activity. Bengaluru recorded 0.24 million sq ft: 3.8% below Q2 but 39% above Q3 2025. That contrast is a reminder that a national total can conceal different city-level movements.
Cushman & Wakefield put Grade A mall vacancy at 4.8%, down from 5.0% in Q2. The measure is specifically for Grade A malls; it is not the vacancy rate for all Indian retail property. The report also expects about 12.7 million sq ft of Grade A mall supply through 2028, including around 1.35 million sq ft projected for completion in 2026. Expected supply is a pipeline, not completed space.
BestProp.ai’s earlier retail-stock report measures the existing organised retail base and pipeline. The Q3 release adds a different lens: space leasing during a specific quarter.
What a property reader can take from it
For a retail property decision, the eight-city trend is a starting point, not an underwriting result. The asset’s own tenant roster, leased area, vacancy, lease expiry dates, rent collection and upcoming competing supply matter more than the national 2.22 million sq ft figure. For a high-street location, the relevant catchment and frontage need separate review; for a mall, tenant mix and occupancy should be checked against that mall’s actual disclosures.
Did retail leasing grow in Q3 2026? No. Cushman & Wakefield reported a 7.3% quarter-on-quarter and 4.4% year-on-year decline across the top eight cities, while nine-month leasing remained 0.4% above the prior-year period.
Does the 4.8% vacancy figure cover every retail property? No. It is the report’s Grade A mall vacancy measure.
Does the report show Bengaluru retail rents or home prices? The cited release reports leasing volume and selected market measures; it does not provide a rent or residential-price estimate for an individual property.
Sources and scope
This article uses Cushman & Wakefield’s Q3 2026 India retail release, published 1 October 2026 and retrieved on 12 October. It is a report of leasing activity across eight cities, not an asset valuation or housing forecast. The hero is an AI-generated conceptual illustration by BestProp.ai.