D2C brands took 28% of India’s retail leasing in H1 2026
CBRE puts organised retail leasing at 3.9 million sq ft in the first half, up 20%. Digital-first brands took more than a quarter of it.
- Organised retail leasing hit 3.9 million sq ft in H1 2026, up 20% year on year.
- D2C brands took about 28% of leasing. Domestic retailers took over 70%.
- Fashion and apparel led at 40% of take-up, food and beverage next at 14%.
- Only 0.9 million sq ft of new supply completed, all of it in Delhi NCR.
India’s organised retail leasing reached about 3.9 million sq ft in the first half of 2026, up 20% year on year, according to CBRE. Digital-first brands accounted for roughly 28% of that space.
Fashion and apparel was the largest category at about 40% of take-up, led by department stores, mid-range fashion and athleisure. Food and beverage took 14%, entertainment 9%, jewellery and homeware and furnishings 7% each, and consumer electronics 6%. Domestic retailers accounted for more than 70% of total leasing.
Supply stayed tight. Only about 0.9 million sq ft of new retail space completed in the half, and all of it landed in Delhi NCR. In tier 2 markets the mix was narrower still, with fashion and apparel taking 69% of leasing in Chandigarh and Jaipur and 65% in Kochi.
CBRE expects the expansion to continue, helped by upcoming Grade A developments and metro and ring road projects.
The operator read is straightforward. Online-only brands are converting marketplace and quick commerce demand into physical footprints at scale, and they are doing it into a market where good mall space is scarce and rents are firming. That changes the arithmetic. Marketplace commission is a variable cost that scales with revenue. A store lease is a fixed cost that does not, and it has to be underwritten on catchment, not on brand ambition.
Before signing, model store contribution against the same rupee spent on marketplace ads or quick commerce visibility, and be honest about which channel is actually acquiring new customers rather than harvesting existing ones.
Zane’s analysis draws on original reporting by Organiser. Read the original report.