Multiple shopping malls to open by 2026 in 7 cities with 16.6mn sq ft space: Anarock
India's seven major cities will witness a fresh supply of 16.6 million (166 lakh) sq ft of prime retail spaces in
shopping malls
by the end of the next year, according to Anarock. Real estate consultant Anarock data shows that over 16.6 million (166 lakh) sq ft of Grade A supply will be added in new shopping malls, likely to open during the 2025 and 2026 calendar years.
Hyderabad and Delhi-NCR will command the lion's share in fresh supply at 65 per cent. The other five cities are Mumbai, Kolkata, Chennai, Bengaluru and Pune.
"The surge is also prompted by a perceivable shortfall in new supply of Grade A malls across cities. The previous three-year data trends show that new mall supply in the top 7 cities did not match the overall leasing," Anuj Kejriwal, CEO & MD of Anarock Retail, said.
In 2022, these seven cities witnessed about 2.6 million (26 lakh) sq ft of new Grade A retail supply, while leasing clocked in at 3.2 million (32 lakh) sq ft.
Likewise, 2023 saw 5.3 million (53 lakh) sq ft of new Grade A mall supply, while 6.5 million (65 lakh) sq ft space was leased.
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The demand-supply gap widened further in 2024 due to approvals slowing down because of general and state elections.
"New Grade A mall supply in 2024 was just 1.1 million (11 lakh) sq ft, while leasing was 6.5 million (65 lakh) sq ft," said Kejriwal.
While the estimated new supply to some extent raises the spectre of potential oversupply, current absorption trends are reassuring, the consultant said.
Anarock has pegged leasing of retail spaces in malls over the next two years at more than 12.6 million (126 lakh) sq ft across the top 7 cities.
Pacific Group Managing Director Abhishek Bansal said the expansion of retail real estate is also gaining ground in tier II and III cities.
"While metro cities dominate, emerging hubs like Jaipur are gaining traction, highlighting the need for quality retail infrastructure beyond tier I cities to meet evolving consumer and investor demand," Bansal said.
Pacific Group has nine shopping malls, comprising more than 30 lakh sq ft of retail space in Delhi, Ghaziabad, Faridabad, and Dehradun.
"Delhi NCR is expected to emerge as the frontrunner in this expansion, driven by rising consumer demand, improving infrastructure, and changing lifestyle dynamics," Pralayesh Guha, VP-Projects at Trehan Iris, said.
Kirthi Chilukuri, Founder and MD of Stonecraft Group, said, "The rapid expansion of Grade A retail spaces, particularly in Hyderabad, is a clear reflection of the city's growing economic strength and rising consumer confidence. As retail infrastructure becomes more sophisticated, we see an undeniable correlation with premium residential demand."
Angad Bedi, CMD of Bengaluru-based BCD Group, said that homegrown and international brands are expanding their footprint in India, driven by rising consumer demand and a dynamic retail landscape.
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