Delhi NCR to welcome nearly 3m sq ft of new retail supply this year

The strong supply pipeline is expected to support leasing momentum.

Delhi NCR's retail market maintained steady momentum in Q1 2026, with gross leasing volume reaching 0.65 million sq ft and net absorption totalling 0.25 million sq ft, according to JLL.

Leasing activity was concentrated in the Prime Others and Suburbs submarkets, which accounted for 51% and 45% of total demand respectively. JLL said malls captured the bulk of leasing activity, led by fashion and apparel retailers, followed by food and beverage operators and entertainment brands.

With no new supply delivered during the quarter, mall stock remained at 28.6 million sq ft. Vacancy declined by 88 basis points to 12.8% as strong retailer demand absorbed available space.

Average rents increased 0.9% quarter-on-quarter and 3.6% year-on-year, while capital values rose 1.8% and 4.5% respectively. Prime Others recorded the strongest rental growth at 9.9% year-on-year.

JLL said nearly 3 million sq ft of new retail supply is expected to open during 2026, supporting retailer expansion across Gurgaon, Ghaziabad, Dwarka and Greater Noida.