India’s retail sector is experiencing a transformative phase, with 16.6 million sq. ft. of new Grade A mall space expected across the top seven cities by 2026, according to ANAROCK Research. Hyderabad and Delhi-NCR will dominate with 65% of this supply, reflecting their emergence as key consumption hubs.
Despite previous supply-demand imbalances, with mall vacancy rates peaking at 15.5% in 2021, the market is stabilizing. Vacancy rates are projected to settle at 8.2% in 2025 and 8.5% in 2026, bolstered by strong leasing activity and rising consumer confidence. Over 12.6 million sq. ft. of mall space is projected to be leased in the next two years, as developers and retailers capitalize on increasing demand.
The entry of over 60 global brands in categories such as fashion, electronics, and F&B over the past four years has intensified demand for high-quality retail spaces. Tier 2 and Tier 3 cities are also emerging as major consumption centers, driven by rising disposable incomes and a growing e-commerce market, which accounted for 56% of online shopping in FY 2024 and is expected to reach 64% by FY 2030.
“India’s retail sector is poised for exponential growth,” said Anuj Kejriwal, CEO & MD of ANAROCK Retail.
