New Mall Supply to Touch 1.54 Bn Sq. Ft. by 2026 in Top Cities

16 May 2025 CW Team

India's top seven cities are set to receive 1.54 billion square feet of new Grade A mall space in calendar years 2025 and 2026, according to ANAROCK Research. Hyderabad and Delhi-National Capital Region will account for around sixty-five per cent of this supply, marking them as key retail hubs.

Leasing activity is forecast to exceed 1.17 billion square feet over the same period, driven by rising consumer demand and the entry of over sixty international retail brands across fashion, electronics, lifestyle, and food and beverage categories.

This robust leasing has helped reduce the supply-demand gap seen in prior years. Vacancy levels, which stood at fifteen point five per cent in 2021, are expected to decline to 8.2 per cent in 2025 and 8.5 per cent in 2026.

The boom is also extending beyond Tier 1 markets. Tier 2 and Tier 3 cities are emerging as high-growth retail destinations, with their share of online shopping rising from fifty-six per cent in FY24 and projected to reach sixty-four per cent by FY30. The number of Indian online shoppers is expected to rise from 260 million in 2024 to 700 million by 2035.

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