Domestic apparel brands drive 20 per cent growth in Indian retail real estate demand

Organized retail space absorption across India reached approximately 3.9 million sq ft in H1, FY26, marking a 20 per cent Y-o-Y expansion. According to real estate advisory findings from CBRE, the fashion and apparel sector retained its dominance as the single largest growth driver, capturing nearly 40 per cent of overall retail leasing activity. Growth was particularly pronounced in Tier-II commercial hubs, where apparel brands accounted for 69 per cent of total retail space take-up in cities like Chandigarh and Jaipur, and 65 per cent in Kochi. High-street store optimization and department store expansions led the charge, supported by strong consumer demand for athleisure, mid-range clothing, and hybrid casualwear lines.

D2C platforms and domestic giants offset high commercial rents

While escalating prime mall rents and tight Grade-A retail supply present operational headwinds, domestic retailers accounted for over 70 per cent of total H1 2026 leasing activity. Notably, direct-to-consumer (D2C) apparel brands represented 28 per cent of physical store absorption as online platforms establish brick-and-mortar storefronts to reduce customer acquisition costs. Retailers today are making sharper, more considered choices about where and how they expand, building a more resilient, long-term retail sector, states Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & North Africa, CBRE.

Commercial real estate enterprise tracks retail real estate expansion

A Fortune 500 real estate services and investment firm, CBRE Group, Inc provides market intelligence, property management, and retail leasing advisory across global commercial centers. Operating across major Asian, European, and American retail markets, the consultancy advises institutional developers and international fashion conglomerates on retail footprint expansion and store site selection.