- 8.6 million square feet of new supply in two years
- This accounts for over 70% of the total Grade-A mall supply
- According to the report by Cushman & Wakefield
Cushman & Wakefield has revealed that in the next two years, over 8.6 million square feet of new mall supply in the superior Grade-A category will be added in the country. It is estimated that a total of 12.3 million square feet of new Grade-A mall supply will be added over the next two years, with more than 70% of it being superior Grade-A malls. The report highlights that this indicates a significant upgrade in the quality of retail infrastructure in India. By the end of 2026, 19 premium shopping malls will be operational across eight major cities, including Hyderabad. Superior-grade malls are typically owned and managed by renowned developers or institutional investors.
In 2024, the total Grade-A mall stock in India is expected to reach 61.5 million square feet, with superior-grade malls accounting for 38.9 million square feet (63%). The rents for these malls have increased by 29% since 2019, with the current average rent being Rs 315 per square foot per month. Metro cities like Delhi, Mumbai, Bengaluru, and Pune are leading the Grade-A mall stock, and investors and retailers are showing increased interest in superior-grade properties in these metros. Due to the limited space in top-grade malls, many premium brands are turning towards high streets in major cities like Mumbai’s Linking Road, Delhi’s Khan Market and Connaught Place, and Bengaluru’s MG Road as popular alternatives. Over the past few years, rents in these high streets have increased post-COVID.
The report also mentions that traditional malls like hypermarkets and movie theatres are losing tenant importance, while sectors like fashion, beauty, wellness, and dining are growing significantly. Specifically, beauty and wellness, as well as food and beverage (F&B) sectors, have shown strong growth in malls. “The Indian retail industry is growing rapidly, and consumer aspirations are increasing at the same pace. The increasing availability of premium malls is not only a sign of expansion but also reflects the growing emphasis on quality and improved experiences. Today, customers place as much importance on a better brand experience as they do on the product itself,” said Sourabh Shatdal, Head of Retail India, Cushman & Wakefield. He also highlighted that segments like beauty, healthcare, food & beverages, and sportswear will shape the next phase of retail industry growth.
