With 16.6 million square feet of Grade A mall space anticipated to be added across the top seven cities by the end of 2026, India's retail real estate market is preparing for a significant expansion phase. After years of limited new supply and rising demand from consumers and international retail brands, the most recent research from real estate firm ANAROCK claims that this represents a substantial turnaround.
Hyderabad and Delhi-NCR, which together will account for around 65% of the new retail space, are leading the way. Due to increased earnings, fast urbanization, and intense leasing activity, these cities are becoming important hubs for consumption.
Grade A malls refer to large, high-quality shopping centers located in prime areas, typically offering over 500,000 sq. ft. of space. They feature a strong mix of national and international brands, modern infrastructure, and professional management—making them attractive to both retailers and shoppers.
The surge in new mall supply is also a response to a clear mismatch in recent years. For example, in 2022 and 2023, leasing demand far outpaced new supply. Even in 2024, when new space delivery slowed due to elections, leasing remained strong at 6.5 million sq. ft.
ANAROCK’s research highlights strong market confidence, with over 12.6 million sq. ft. of retail space expected to be leased across 2025 and 2026. The entry of over 60 global brands in the past four years across fashion, electronics, and food & beverage is further fueling this momentum.
All signs point to India’s retail real estate entering a high-growth era—one defined by bigger, better malls and a booming consumer market.
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