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Fashion & Apparel remained India’s largest retail leasing category, accounting for approximately 40% of overall space take-up between January and June this year (H1 2026), according to real estate services and investments firm CBRE South Asia Pvt.Ltd. Retail leasing in the country rose 20% year-on-year to approximately 3.9 million sq. ft. in H1 2026, with April-June (Q2 2026) alone contributing approximately 2.0 million sq. ft.
In its India Retail Figures H1 2026 report, the company said that leasing activity in the Fashion & Apparel category was led by department stores, mid-range fashion, and athleisure brands.
- Retail leasing in India rises 20% in H1 2026 to ~3.9 million sq. ft
- Fashion & Apparel is followed by Food & Beverage (F&B) at approximately 14% and Entertainment at 9%
- CBRE expects fashion retailers to increasingly adopt AI tools
The Fashion and Apparel sector is witnessing two distinct trends. Athleisure is broadening its footprint into mainstream daily wear to capture the demand for comfort-first, multi-occasion dressing. Simultaneously, the market is experiencing a pull towards premiumisation, marked by the ongoing entry and expansion of international brands in India.
CBRE said retailers are responding to these shifts by dedicating space to hybrid clothing lines suited to the multi-occasion lifestyles of professionals and Gen Z consumers.
"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," said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & North Africa, CBRE.
Fashion & Apparel's ~40% share was followed by Food & Beverage (F&B) at ~14% and Entertainment at ~9%. Jewellery and Homeware & Furnishings each accounted for roughly 7% of leasing activity, while Consumer Electronics accounted for approximately 6%, and followed by Hypermarket, Health & Personal Care, and Luxury.
While Fashion & Apparel remained the clear leader, the spread across categories points to a broad-based retail leasing market, with multiple sectors contributing meaningfully to overall demand rather than growth being concentrated in one category alone.
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."
The report also highlighted that Fashion & Apparel's dominance was even more pronounced outside key Indian cities. The category accounted for approximately 69% of total leasing in both Chandigarh and Jaipur, and approximately 65% in Kochi in H1 2026.
Looking ahead, CBRE expects fashion retailers to increase their use of AI tools such as generative styling to create customised product layouts and fashion looks, and predictive inventory to forecast demand and optimise stock levels. These tools could help retailers better integrate their online and in-store operations.
