Indian Economy News

Multiple shopping malls to open by 2026 in seven cities with 16.6 million sq. ft. space: Anarock

India's seven major cities are set to receive 16.6 million square feet (sq. ft.) of prime retail space in new shopping malls by the end of 2026, as per Anarock's data. The majority of this supply, around 65%, will be concentrated in Hyderabad and the Delhi-National Capital Region (NCR). Mumbai, Kolkata, Chennai, Bengaluru, and Pune are other cities that are expected to see increased retail space. This surge in new supply is a response to a noticeable shortage of Grade A mall spaces in the past few years. Anarock's Chief Executive Officer & Managing Director, Mr. Anuj Kejriwal, noted that previous supply levels in the top seven cities did not align with the leasing trends.

In 2022, these cities saw 2.6 million sq. ft. of new retail space, while 3.2 million sq. ft. were leased. The following year, 5.3 million sq. ft. of Grade A retail space was added, with leasing reaching 6.5 million sq. ft.. The supply-demand gap widened in 2024, with only 1.1 million sq. ft. of new space added, while leasing remained strong at 6.5 million sq. ft.. While some concerns about potential oversupply exist, Anarock anticipates leasing over 12.6 million sq. ft. of retail space across the top seven cities in the next two years. The retail sector's expansion is also making headway in tier II and III cities, with emerging hubs like Jaipur gaining attention. Retail infrastructure in Delhi-NCR and Hyderabad is expected to lead this growth, driven by rising consumer demand and evolving lifestyle trends.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.