Mumbai retail leasing surges on luxury and fashion demand

Leasing volume in Q1 increased 1.8 times.

Retail leasing activity in Mumbai surged during the first quarter of 2026 as domestic and international brands accelerated expansion plans across malls and high streets, according to JLL.

Leasing volume increased 1.8 times quarter-on-quarter, driven by strong demand from luxury, fashion and beauty retailers.

Net absorption reached approximately 0.2 million square feet during the quarter, supported by leasing activity in operational malls. While the suburbs led overall leasing, Prime North's Jio World Plaza recorded the quarter's most notable transaction with the signing of Saks 5th Avenue.

No new shopping centres were completed during the quarter, leaving total mall stock unchanged at 15.5 million square feet.

Strong occupier demand in premium centres pushed overall vacancy down by 130 basis points quarter-on-quarter to 7.9%.

Rental growth remained positive, with rents increasing 6% year-on-year. Prime South recorded the strongest rental growth among all submarkets during the quarter.

JLL also noted continued investor appetite for quality retail assets, contributing to a slight compression in yields.

According to the consultancy, consumer preferences are increasingly shifting toward experiential retail destinations that combine shopping, dining and entertainment. This trend, alongside India's young demographics and evolving lifestyles, continues to attract both domestic and international brands.

JLL expects retailer expansion to remain strong, supported by new mall developments planned across key growth corridors in Mumbai's prime and suburban markets.