13-05-2025
Hyderabad, Delhi NCR to Lead 16.6 Mn Sq Ft Mall Growth by 2026
India's top seven cities are set to receive 16.6 million square feet of new Grade A mall space during calendar years 2025 and 2026, according to data released Tuesday by ANAROCK Research. Hyderabad and Delhi–NCR will together account for roughly 65 percent of the total scheduled openings.
ANAROCK's report shows this injection follows a period in which leasing activity outpaced supply. In 2022, top-tier markets recorded 2.6 million sq ft of new mall space against 3.2 million sq ft of leasing. The gap widened in 2023, with 5.3 million sq ft opening while leasing hit 6.5 million sq ft. Approvals slowed during the 2024 election cycle, limiting new space to just 1.1 million sq ft even as 6.5 million sq ft were leased.
'Developers responded to a clear shortfall in high-quality retail inventory,' said Anuj Kejriwal, CEO and managing director of ANAROCK Retail. 'The next two years will see supply levels align more closely with demand in leading consumption centres.'
Despite concerns of oversupply, ANAROCK projects that retailers will absorb more than 12.6 million sq ft of mall space across these cities through 2026. Vacancy rates, which peaked at 15.5 per cent in 2021, are forecast to settle around 8.2 per cent in 2025 and 8.5 per cent in 2026.
Retailers' confidence reflects the entry of over 60 global brands in India since 2021, spanning fashion, electronics, lifestyle and food and beverage. Their expansion has driven demand for organised retail venues in high-footfall locations, Mr. Kejriwal said.
The pipeline extends beyond metros. Rapid income growth and rising internet penetration have turned many Tier 2 and Tier 3 cities into consumption hotspots. E-commerce in these markets captured 56 per cent of online retail transactions in fiscal 2024 and could reach 64 percent by 2030, ANAROCK noted. The number of Indian online shoppers climbed from 140 million in 2020 to nearly 260 million in 2024; it may rise to 300 million by 2030 and 700 million by 2035.
ANAROCK Research data highlights the shift in development focus toward India's fastest-growing urban corridors. Industry watchers say the alignment of supply and demand will shape leasing trends and vacancy levels in the coming years.
