According to a new report by ANAROCK Group, India’s top 7 cities recorded 4.3 million sq. ft. of retail leasing in just six months (H2 2025). But here’s the interesting part — high streets are now competing strongly with malls, and in some areas, even outperforming them.

What’s Changing in Your Shopping Experience?

For years, malls were the go-to destination for shopping and entertainment. But now:

• High streets (like Bandra, Linking Road, CP, or Brigade Road) are seeing rising demand and rents
• Popular malls are running low on vacant space
• Brands are expanding wherever they find space — malls or high streets

Simply put: More brands are coming closer to where you live, not just inside malls

Why You’re Seeing More Cafes, Stores & Hangout Spots

The report highlights that people today don’t just want to shop — they want an experience.

That’s why:

• Apparel brands are leading store openings
• Entertainment zones (gaming, cinemas) are growing
• Cafes, restaurants, and food courts are expanding rapidly

So whether it’s a coffee date, movie night, or quick shopping trip — retail spaces are becoming lifestyle hubs.

Store Sizes Are Getting Smarter

Interestingly, most new stores today are:

• Between 1,000 to 5,000 sq. ft.

This means:

• More compact, efficient stores
• More brands fitting into the same area
• Better accessibility for customers

For you, this translates to more options in the same neighbourhood.

Where Is All the New Retail Coming Up?

Future retail supply is not evenly spread. Two regions are dominating:

• Delhi NCR
• Hyderabad

Together, they account for nearly 70% of upcoming retail developments

This means:

• Bigger malls
• New shopping destinations
• More entertainment hubs

Every City Shops Differently

India’s shopping habits vary city by city:

• Mumbai & MMR: Strong demand for fashion & entertainment
• Bengaluru & Hyderabad: Family entertainment & large anchor stores
• Chennai: Apparel & jewellery dominate

This is why malls and shopping streets feel different in every city

Why High Streets Are Suddenly Booming

Here’s the real twist:

• Premium malls in many cities are almost full
• New mall supply is limited
• Brands still want to expand

So what are they doing?

Moving to high streets

This has led to:

• Rising rents in prime locations
• More branded stores on roads you visit daily
• Better retail experience outside malls

What This Means for You

This shift directly impacts your daily life:

More shopping options near your home
Less dependence on large malls
Better dining and entertainment choices
New hangout spots in your neighbourhood
Potential rise in prices in premium areas due to higher rents

The Bigger Picture

India’s retail real estate is no longer just about “buying things” — it’s about creating experiences.

With:

• Rising incomes
• Growing middle class
• Increasing demand for lifestyle experiences

The sector is evolving into a destination-driven ecosystem, where malls and high streets both play a key role.

Conclusion

So the next time you step out and notice a new café, showroom, or store opening on your street — it’s part of a much bigger shift happening across India.

Malls aren’t going away — but high streets are making a strong comeback. And for consumers, that means more convenience, more choice, and better experiences.

Also Read: Realty Stocks Open Weak as Dalal Street Slides; Sector Faces Broad-Based Pressure

The post Malls vs High Streets: Where India Is Shopping More — And What It Means for You appeared first on Square Feat India.

Key Takeaways:

• More Stores, Less Space: In 2024, 6.5 million sq ft of retail space was leased, while new supply struggled to keep up, reducing mall vacancy rates to 7.8%.
• Bigger Stores Preferred: Retailers are choosing larger store spaces (2,000-5,000 sq ft) due to high demand and limited availability.
• Popular Shopping Categories: Beauty, personal care, and departmental stores saw an 11% growth, while apparel and accessories made up 40% of all retail leasing.
• Falling Vacancy Rates: Mall vacancy has dropped from 15.5% in 2021 to 7.8% in 2024, with top malls nearly full.

What’s Coming Next?

New mall developments are in progress, with NCR, MMR, and Hyderabad leading the way, accounting for 78% of upcoming supply. Some major projects include:

• World Mark, Aerocity (30 lakh sq ft, NCR)
• Ramsons Trends Square Mall (10 lakh sq ft, Bangalore)
• Orion Mall (10 lakh sq ft, Hyderabad)

Rising Rents:

As mall spaces become scarce, rental prices are climbing. High-demand areas include:

• South Extension, Delhi: ₹800-1,000/sq ft
• Linking Road, Mumbai: ₹800-1,000/sq ft
• MG Road, Bangalore: ₹250-350/sq ft

Who’s Leasing the Most?

Top retailers expanding their presence include Lifestyle International (15.7 lakh sq ft), Reliance Projects (15 lakh sq ft), and PVR Limited (11.1 lakh sq ft).

The Bigger Picture:

Shopping malls are evolving beyond retail, offering dining, entertainment, and unique experiences to attract customers. With demand continuing to soar, the sector is expected to keep growing, but new supply will be crucial to meet this demand and stabilize rents.

Also Read: Inorbit Malls in Hubli

The post Mall Space Demand Surges, Supply Struggles to Keep Up for Third Year appeared first on Square Feat India.

India’s Retail Boom: Key Statistics

India’s retail sector is one of the fastest-growing industries, contributing over 10% to the country’s gross domestic product (GDP) and employing around 8% of the workforce. The entry of multinational corporations, coupled with a rising middle class, has fueled a surge in retail developments. Nearly 60 new shopping malls, spanning 23.25 million sq. ft, are expected to become operational between 2023 and 2025. According to Kearney Research, India’s retail industry is projected to grow at 9% annually from 2019 to 2030, reaching $1.8 trillion by 2030.

Experience-Driven Stores: The New Retail Trend

Brands are increasingly prioritizing experience-driven stores, incorporating engaging sensory elements such as interactive displays, live demonstrations, and themed store designs to enhance customer engagement. Advanced technologies, including AI-powered recommendations, AR/VR try-ons, and smart displays, are further revolutionizing the shopping experience by seamlessly integrating digital and physical retail.

Industry Leaders Weigh In

Pankaj Jain, Chairman and CMD, SPJ Group, highlights the growing trend of premium retail spaces in key urban centers: “India’s retail sector is witnessing unprecedented growth, with regions like Delhi-NCR emerging as prime hubs for premium and experiential shopping. The demand for mixed-use retail spaces that blend shopping, dining, and entertainment is on the rise. At SPJ Group, we see this as an opportunity to create dynamic retail ecosystems that attract top-tier brands and offer consumers a holistic experience.”

Similarly, Harsh Gupta, CEO, Sundream Group, emphasizes the future of retail: “Retail spaces are evolving into seamless blends of shopping and leisure. Experience-driven stores are the future, and premium brands seek prime locations with high footfall and tech-enabled environments. At Anthurium Noida, we are redefining retail leasing by offering AI-ready infrastructure and a thriving commercial ecosystem.”

Ajendra Singh, Vice-President (Sales and Marketing), Spectrum@Metro, sheds light on how retail is now about storytelling and brand immersion: “Today’s retail is no longer just about products; it’s about storytelling and experiential engagement. Premium brands are elevating the shopping experience with interactive store formats. At Spectrum@Metro, we are curating next-generation retail destinations to create stronger brand connections and sustained consumer interest.”

The Future of Retail Spaces

The rise of premium retail spaces underscores a broader shift toward high-street retail and luxury malls, where technology and immersive experiences redefine consumer interactions. AI, AR/VR, and omnichannel strategies are becoming integral to modern retail, enabling brands to engage with customers beyond traditional sales models. Moving forward, the industry is set to adapt by embracing sustainability, digital innovation, and exclusivity, ensuring that premium retail spaces remain at the forefront of India’s shopping experience.

With the continued expansion of experience-driven retail, India’s shopping landscape is poised for a new era, where physical stores serve as more than just transaction points—they become hubs of engagement, brand storytelling, and customer loyalty.

The post The Rise of Premium Retail Spaces: Brands Prioritize Experience-Driven Stores appeared first on Square Feat India.

The retail sector’s unprecedented growth amid favourable economic factors and rising affluence has translated into impressive mall space leasing in H1 2024, finds the ANAROCK Retail RELEAP report for this period. Mall vacancies are now at just 8.3%, down from 15.5% in 2021 as demand continually outstrips supply.

Mall Vacancies

Source: ANAROCK Research

Anuj Kejriwal, CEO & MD – Retail, Industrial & Logistics – ANAROCK Group, says, “Vacancy in prominent malls continues to be on the decline owing to limited supply and robust leasing. Superior malls across the country are operating almost full capacity. Major national and global brands are keen to take up quality spaces in successful malls and high streets across cities.”

Source: ANAROCK Research

The Apparel & Accessories and Food & Beverages categories remain the dominant segments – however, exclusive stores for watches & jewellery have also witnessed remarkable growth during the year – accounting for nearly 6% of the total retail leasing volume.

“Retailers and brands continue to prefer smaller spaces as nearly 70% of the leases were for spaces admeasuring up to 2,500 sft,” says Kejriwal. “That said, as fresh supply gets added in the coming years, larger spaces will garner an increasing share of total leased area. The highest share of upcoming supply is planned in NCR, MMR, and Hyderabad in the next 4/5 years. Together they account for over 85% of the total incoming supply.”

In the meantime, rental values across prominent high streets are on the rise – and are expected to continue the ascend till quality new supply is added.

Top marquee deals (based on total area leased)

The first half of the current year mirrored the leasing momentum seen in the past two years, with over 3 million sft leased across the country’s major cities. The next few years will witness major supply addition across all these cities, with the NCR accounting for the majority.

Also Read: Inorbit Malls in Hubli

The post Mall Vacancy Levels Down to 8.3% in H1 2024 amid Robust Leasing, Limited Supply appeared first on Square Feat India.

Among the leading cities, Hyderabad, Delhi NCR, and Mumbai recorded the highest leasing volumes, collectively representing 70% of the leasing activity on main streets. The demand for retail space in these locations has pushed rental rates upward, particularly in Delhi NCR, Bengaluru, Chennai, and Kolkata, where rents surged by up to 15% year-over-year.

Rental Growth Across Prominent Main Streets

The report outlines the year-over-year rental growth across various prominent main streets:

• Delhi NCR: 13-15% increase
• Bengaluru: 12-14% increase
• Chennai: 12-14% increase
• Kolkata: 12-14% increase
• Mumbai MMR: 5-7% increase
• Pune: 1-3% increase
• Hyderabad: No significant change
• Ahmedabad: 8-10% increase

In contrast to the strong performance of main streets, retail leasing in malls has remained relatively subdued, constituting just 32% of the total leasing activity. The absence of new mall supply in Q3 2024, coupled with tightening vacancy rates in existing Grade-A malls, has contributed to a more cautious leasing outlook in the mall segment.

Tightening Mall Vacancies

Across major cities, Grade-A mall vacancy rates have continued to tighten, driven by increasing demand, especially from international brands. Foreign brands now account for nearly 30% of leasing activity in malls for the year-to-date period in 2024.

In Q3 2024, the following cities saw the most significant declines in Grade-A mall vacancies:

• Mumbai MMR: 0.89%, down by 18 basis points
• Delhi NCR: 13.91%, down by 33 basis points
• Bengaluru: 5.35%, down by 213 basis points
• Pune: 6.49%, down by 125 basis points
• Hyderabad: 1.50%, down by 137 basis points
• Chennai: 1.74%, down by 17 basis points
• Kolkata: 2.69% (no change)
• Ahmedabad: 11.75%, down by 122 basis points

With vacancy rates tightening in Grade-A malls, demand from international retailers remains high. Notably, foreign brands represented approximately 15% of the overall leasing volume in 2024.

Projected Supply and Leasing Activity

Looking ahead to Q4 2024, approximately 1.8 million square feet of Grade-A malls are set to open, primarily in Mumbai, Delhi NCR, and Pune, providing new opportunities for retailers. This upcoming supply is expected to help alleviate the tightening vacancy rates, though the demand-supply imbalance may persist for some time.

Regional Market Highlights

• Delhi NCR: Retail leasing activity reached 0.3 million square feet in Q3, with Gurugram leading the charge, accounting for 44% of the leasing volume. Main street rentals in Galleria Market in Gurugram saw a remarkable 20% growth both quarter-over-quarter and year-over-year. In Khan Market, rentals also jumped 7% during the same period.
• Mumbai: The city’s retail sector saw leasing volumes of 0.16 million square feet in Q3, a 76% increase from the previous year. Prominent suburban malls accounted for the majority of this activity, contributing 64% of the total leasing volume.
• Bengaluru: With 0.2 million square feet of retail leasing in Q3, Bengaluru recorded a 10% year-over-year growth. Main street leasing contributed 56% of the total leasing volume, with notable growth seen in high-street locations.
• Chennai: Main street leasing in Chennai surged by 28% quarter-on-quarter and 57% year-over-year. However, leasing in malls was limited, reflecting the lack of quality space in the market. Main street rentals in areas like Anna Nagar and Pondy Bazaar saw a strong 8-12% increase.
• Hyderabad: Retail leasing activity reached 0.49 million square feet, up 22.3% year-over-year. Main street rents rose by up to 10%, particularly in key areas like M.G. Road and Abids. The city’s Grade-A mall vacancy rate dropped to just 1.5%.
• Kolkata: Main streets continued to lead retail leasing activity, with limited Grade-A mall supply contributing to the ongoing demand. The overall vacancy rate in malls remained stable at 6.8% quarter-over-quarter.
• Pune: Retail leasing in Pune grew significantly in Q3, with mall leasing volumes increasing 85% from the previous quarter. Main street leasing saw a remarkable 104% jump quarter-over-quarter, particularly in established areas like NIBM Road.
• Ahmedabad: Retail leasing in Ahmedabad remained steady, with main street leasing totaling approximately 59,900 square feet. Malls saw a slight decline in leasing activity, though vacancy rates continued to tighten.

Future Outlook

Despite the slower leasing activity in malls during Q3 2024, the outlook for Q4 remains positive, with a significant influx of new Grade-A mall supply expected. This should help meet the growing demand for retail space, particularly from high-end international brands and expanding domestic retailers.

Saurabh Shatdal, Head of Retail and Managing Director, Capital Markets at Cushman & Wakefield, commented on the findings: “The Indian retail sector is evolving rapidly, with main streets driving high leasing due to limited mall supply. While malls saw a quieter quarter, we expect this gap to be addressed in Q4 with a strong influx of new Grade-A spaces. The evolving lifestyles of Indian consumers, especially in fashion, food & beverage, and accessories, are also playing a pivotal role in shaping retail leasing trends.”

As the retail landscape continues to evolve, Cushman & Wakefield’s latest report underscores the ongoing growth of India’s main streets, alongside a promising supply pipeline that will help meet the growing demand for premium retail spaces across key urban markets.

Also Read: Indian retail sector booms: 5.3 million sq. ft leased in top 7 cities during first 9 months (Jan-Sept) of 2024

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