Delhi-NCR

India’s retail landscape is undergoing a significant shift, as the country gears up to add more than 16.6 million square feet of premium mall space across its top seven cities by 2025 and 2026, according to a recent study by Anarock Research. This upcoming wave of expansion is being powered by a combination of robust consumer demand and strong leasing activity, ushering in what experts are calling a “golden era” for organized retail. Hyderabad and Delhi-NCR are at the forefront of this surge, together accounting for nearly 65% of the new supply, signaling their emergence as key consumption hubs. The boom is part of a larger development trend, with projections suggesting that over 40 million sq. ft. of new retail space could be introduced nationwide by 2029. Anuj Kejriwal, CEO and MD of Anarock Retail, attributed this development drive to a prevailing shortage of high-quality retail spaces. He pointed out that while 2022 saw 2.6 million sq. ft. of mall space being added, leasing demand hit 3.2 million sq. ft. The trend continued in 2023, with 5.3 million sq. ft. of new supply compared to 6.5 million sq. ft. leased. The mismatch was even more evident in 2024, when only 1.1 million sq. ft. of mall space became operational amid election-related approval delays, yet leasing demand remained strong at 6.5 million sq. ft. Despite the significant inflow of new space, experts are not concerned about oversupply. The report predicts that leasing activity will surpass 12.6 million sq. ft. in 2025 and 2026, underlining sustained interest from developers and retailers alike. This momentum is further driven by the entry of more than 60 international brands into India over the past four years—spanning sectors like fashion, electronics, lifestyle, and F&B—all seeking a foothold in high-traffic malls and commercial zones. As a result, mall vacancy rates—which hit a high of 15.5% in 2021—are anticipated to settle at around 8.2% in 2025 and 8.5% in 2026. This retail evolution isn’t limited to the metros. Tier 2 and Tier 3 cities are rapidly emerging as key retail destinations, backed by rising disposable incomes, improved internet infrastructure, and a surge in ecommerce activity. In fact, these cities now dominate India’s online shopping landscape. The number of online shoppers in India has nearly doubled from 140 million in 2020 to 260 million in 2024 and is forecasted to reach 300 million by 2030 and a staggering 700 million by 2035. Source: IANS