Fashion & Apparel Leads India's Retail Leasing Activity in H1 2026: CBRE
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Retail leasing rises 20% year-on-year to nearly 3.9 million sq. ft., with fashion accounting for around 40% of total space take-up.
CBRE South Asia Pvt. Ltd. has reported that the Fashion & Apparel segment accounted for approximately 40% of India's retail leasing activity during H1 2026, maintaining its position as the country's largest retail leasing category.
According to the India Retail Figures H1 2026 report, retail leasing reached approximately 3.9 million sq. ft. between January and June 2026, marking a 20% year-on-year increase. The April–June quarter (Q2 2026) alone contributed around 2.0 million sq. ft. of leasing activity.
Leasing demand within the Fashion & Apparel category was led by department stores, mid-range fashion brands and athleisure retailers.
Athleisure and Premiumisation Drive Growth
CBRE noted that the fashion industry is experiencing two major trends.
Athleisure brands continue expanding beyond sportswear into everyday apparel, responding to increasing consumer demand for comfort-focused, multi-purpose clothing. At the same time, India's retail market is witnessing continued premiumisation through the entry and expansion of international fashion brands.
Retailers are also allocating more store space to hybrid apparel collections designed for professionals and Gen Z consumers seeking versatile clothing suitable for multiple occasions.
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."
F&B and Entertainment Follow Fashion
After Fashion & Apparel's approximately 40% share, the report found:
- Food & Beverage (F&B): ~14%
- Entertainment: ~9%
- Jewellery: ~7%
- Homeware & Furnishings: ~7%
- Consumer Electronics: ~6%
- Followed by Hypermarkets, Health & Personal Care, and Luxury
CBRE said the distribution across categories reflects a diversified retail leasing market rather than growth being concentrated in a single segment.
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."
Strong Performance Beyond Metro Cities
The report highlighted particularly strong Fashion & Apparel leasing activity in emerging retail markets.
The category represented approximately:
- 69% of retail leasing in Chandigarh
- 69% in Jaipur
- 65% in Kochi
AI Expected to Shape Future Retail Expansion
Looking ahead, CBRE expects fashion retailers to increasingly adopt artificial intelligence across store operations.
The report identifies technologies such as generative styling for personalised merchandising and predictive inventory management to improve demand forecasting and optimise stock levels. These capabilities are expected to strengthen integration between online and physical retail channels.