India’s retail sector is entering a golden phase, with new mall developments surging to meet growing consumer demand. According to ANAROCK Research, over 16.6 million square feet of Grade A mall space is slated for completion across the top 7 cities—including Mumbai, Delhi-NCR, Hyderabad, Bengaluru, Pune, Chennai, and Kolkata—during calendar years 2025 and 2026.

“The surge is also prompted by a perceivable shortfall in new supply of Grade A malls across cities,” says Anuj Kejriwal, CEO & MD, ANAROCK Retail. “The data speaks for itself.”


📈 New Grade A Mall Supply (CY 2025-26): Top 7 Cities

CityApprox. Share of New Supply
Hyderabad~35%
Delhi-NCR~30%
Remaining Cities~35% (Mumbai, Pune, Bengaluru, Chennai, Kolkata)
  • Total new Grade A mall supply: 16.6 Mn sq. ft.
  • Delhi-NCR and Hyderabad alone to contribute ~65% of this total supply.

📊 Mall Leasing & Vacancy Trends (CY 2021–26)

YearNew Mall Supply (Mn sq. ft.)Leasing (Mn sq. ft.)Vacancy Rate
2021~1.4~2.515.5%
20222.63.2
20235.36.5
20241.16.5
2025*8.2%
2026*8.5%

*Projected

“Despite the sudden spike in new supply, we do not foresee a severe oversupply scenario, as leasing demand remains very strong,” Kejriwal noted.


🛍️ Rising Demand for Organized Retail Spaces

One of the strongest drivers of this mall boom is the entry of over 60 global retail brands across categories like:

  • Fashion
  • Electronics
  • Lifestyle
  • Food & Beverage (F&B)

These brands are choosing high-footfall malls and high streets, boosting demand for high-quality organized retail infrastructure.


🏙️ Retail Boom Reaches Tier 2 & Tier 3 Cities

The retail expansion is no longer restricted to metros. Smaller cities are witnessing a consumption renaissance, spurred by:

  • Higher disposable incomes
  • Greater smartphone & internet penetration
  • Faster ecommerce adoption

📦 Ecommerce Shopping Share (By City Tier)

YearTier 2 & 3 Cities ShareTier 1 Cities Share
FY 202456%44%
FY 2030*64%36%

*Projected

  • Online shoppers in India:
    • 2020: 140 Mn
    • 2024: 260 Mn
    • 2030 (projected): 300 Mn
    • 2035 (projected): 700 Mn

🔮 Outlook

With leasing activity staying robust and vacancy rates projected to stabilize around 8.2%–8.5%, the organized retail space in India is on a strong upward trajectory. The convergence of global brand entry, consumer confidence, and emerging consumption centers positions India as one of the most dynamic retail markets in the world today.

Also Read: Mall Space Demand Surges, Supply Struggles to Keep Up for Third Year

You May Also Like

Ultra-Luxury Homes Sales Soar to ₹4,754 Crore in 2024, Driven by Mumbai’s Strong Demand

In 2024, ultra-luxury home sales across India reached a record ₹4,754 crore, marking a 17% year-on-year increase. Mumbai dominated the market with 52 high-value deals, including properties priced over ₹100 crore. The continued demand from HNIs and Ultra-HNIs, coupled with a growing interest in premium apartments and bungalows, underscores the resilience of India’s luxury real estate market.

Indian Real Estate Developers Raise Rs 12,801 Cr Through QIPs in 2024

In a notable shift post-pandemic, Indian real estate developers have successfully raised INR 12,801 crore through Qualified Institutional Placements in 2024. This surge is attributed to enhanced transparency and a robust recovery in residential sales, with significant contributions from leading firms like Macrotech Developers. As the market continues to grow, investor confidence remains strong, positioning the sector for ongoing expansion.

India’s Office Market Witnesses Strong Tenant Demand 

-Net Absorption in Q1 2024 at 11.5 MSF across top-8 cities; third highest in…

🏢 Realty Stocks End Firm as Big Developers Lead Gains; Mid-Caps Stay Mixed

Realty stocks closed firm in India today, led by DLF, Oberoi, Lodha, and other blue-chip developers. Mid-caps showed mixed performance amid selective buying. Stable macro cues, value accumulation, and rate expectations supported gains. Investors now turn to earnings and policy signals for the next move.