Fashion and apparel remained India’s largest retail leasing category in the first half of 2026, accounting for approximately 40% of overall space take-up between January and June, according to a new report from real estate services firm CBRE South Asia Pvt. Ltd.
Overall retail leasing in India rose 20% year-on-year to approximately 3.9 million square feet in H1 2026, with the April-June quarter alone contributing about 2.0 million square feet, CBRE said in its “India Retail Figures H1 2026” report.
The report found that leasing activity within the Fashion & Apparel category was led by department stores, mid-range fashion brands, and athleisure players. CBRE identified two parallel trends shaping the sector: athleisure brands are expanding into mainstream daily wear to meet demand for comfort-first, multi-occasion clothing, while premiumisation is also on the rise as international brands continue entering and expanding in the Indian market.
Retailers are responding to these shifts by allocating space to hybrid clothing lines that cater to the multi-occasion lifestyles of working professionals and Gen Z consumers, according to the report.
“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 roughly 40% share was followed by Food & Beverage at approximately 14% and Entertainment at about 9%. Jewellery and Homeware & Furnishings each accounted for roughly 7% of leasing activity, while Consumer Electronics made up about 6%, followed by Hypermarket, Health & Personal Care, and Luxury categories.
CBRE noted that while Fashion & Apparel remained the dominant category overall, demand was spread across multiple sectors rather than being concentrated in one, pointing to a broad-based retail leasing market.
Rami Kaushal, Managing Director, Consulting & Valuations, India, Middle East & Africa at 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 found that Fashion & Apparel’s dominance was even more pronounced outside major Indian cities. The category accounted for approximately 69% of total leasing activity in both Chandigarh and Jaipur, and around 65% in Kochi during H1 2026.
Looking ahead, CBRE said it expects fashion retailers to increase adoption of AI tools, including generative styling for customised product layouts and fashion looks, and predictive inventory systems to forecast demand and optimise stock levels — technologies that could help retailers better integrate their online and in-store operations.
