India’s top eight retail markets recorded 2.22 million square feet of gross leasing in July–September 2026, according to Cushman & Wakefield. The total was down 7.3% from the previous quarter and 4.4% from a year earlier. High streets accounted for 67.9% of the quarter’s leasing, while mall leasing declined. (Cushman & Wakefield’s Q3 2026 retail report)
The headline is a split between formats, not a broad claim that retail property demand is either rising or falling everywhere. High-street leasing reached 1.51 million square feet, up 33.1% year over year. Mall leasing was 0.71 million square feet, down 37.8% year over year. Cushman & Wakefield also reports Grade A mall vacancy at 4.8%, after no new Grade A mall supply entered the market for three consecutive quarters.
High streets led, but not in every city
The national pattern does not describe every city equally. Delhi NCR, Hyderabad and Mumbai together made up 61% of Q3 leasing. Bengaluru recorded 0.24 million square feet: 39% above the year-earlier quarter but 3.8% below Q2 2026. Those comparisons point in different directions because the annual and quarterly baselines differ.
For a commercial property buyer or landlord, the useful question is therefore not simply whether “retail” is growing. It is whether the specific property competes with high-street space or a mall, how much comparable supply is available locally, and whether the tenant mix and lease terms support the expected income. The report’s national totals cannot answer those questions for one asset.
BestProp.ai’s Q3 review of India’s industrial and logistics property market shows why property-market indicators need to stay asset-class specific. Retail leasing is not a proxy for warehouse or office demand.
What the mall vacancy figure does not prove
A 4.8% vacancy rate for Grade A malls is a measure of space availability in the report’s defined category and markets. It is not a forecast of rent growth, a guarantee that a mall will lease quickly, or evidence that every retail property is scarce. The report says about 12.7 million square feet of mall supply is expected through 2028, so the supply picture may change as projects complete.
Cushman & Wakefield’s quarter is a useful snapshot of leasing activity and format mix. Investors still need asset-level occupancy, rent, operating cost and location evidence before using it to assess a purchase.