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
| City | Approx. 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)
| Year | New Mall Supply (Mn sq. ft.) | Leasing (Mn sq. ft.) | Vacancy Rate |
|---|---|---|---|
| 2021 | ~1.4 | ~2.5 | 15.5% |
| 2022 | 2.6 | 3.2 | – |
| 2023 | 5.3 | 6.5 | – |
| 2024 | 1.1 | 6.5 | – |
| 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)
| Year | Tier 2 & 3 Cities Share | Tier 1 Cities Share |
|---|---|---|
| FY 2024 | 56% | 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
