India’s mall market heads towards larger formats, greater consolidation

MUMBAI: India’s shopping mall market is entering a phase of larger developments and consolidation, as developers increasingly focus on destination-led retail assets while leading players expand their presence, strengthening their footprint across the organized retail landscape in major cities.

The shift towards larger retail assets is also driving greater concentration among leading developers. The top three listed developers currently account for about 14% of operational retail stock in tier 1 markets as of the first half of 2026, a share that could rise to around 21% by 2031, showed JLL assessment.

The top 10 developers are estimated to account for 44% of total shopping mall stock by then.


“India's retail real estate sector is entering a new growth phase with significant scale, with 51.1 million sq. ft. of new mall space set to redefine the shopping experience by 2031. The shift toward large-format, experiential destinations, which will account for 56% of upcoming supply, signals a fundamental transformation in how consumers engage and how consumption patterns are evolving with changing generational preferences,” said Saket Amrit, Head of Retail Services, India, JLL.

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A significant portion of this space is expected to move beyond conventional retail. Around 30-35% of space in large-format malls will be dedicated to entertainment, food and beverage and services, translating into nearly 9-10 million sq. ft. across the three categories.

"The evolution of modern malls is no longer about expanding retail footprints, but about creating vibrant, compelling ecosystems. Today’s discerning consumers are selective with where they spend their time resulting in elevating curation, tenant diversity, active programming, and operational excellence into critical drivers of asset performance by the mall developer,” said Sunil Munshi, COO, Retail, Brigade Group.

According to him, the defining differentiator for developers will be their ability to sustain a powerful, continuously relevant consumer proposition.

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The shift is set to play out alongside a significant expansion in mall supply. Developers are planning 51.1 million sq ft of new shopping mall space over the next five years, taking India’s total mall stock to 143.2 million sq ft by the end of 2031.

The next five years are also expected to see the emergence of next-generation neighbourhood malls, although their share will remain limited to 15% of upcoming mall supply. The segment has a pipeline of approximately 7.9 million sq. ft. between 2026 and 2031.

Delhi NCR and Hyderabad are expected to account for more than half of the upcoming retail supply, reinforcing their position as key markets for the next phase of mall development.

Delhi NCR had the largest operational mall stock among the top markets at 29 million sq. ft. in the first half of 2026, followed by Mumbai at 15.1 million sq. ft. and Bengaluru at 14.4 million sq. ft. By 2031, Delhi NCR’s mall stock is projected to reach 48.6 million sq. ft., while Bengaluru and Mumbai are expected to reach 22 million sq. ft. and 21.6 million sq. ft., respectively.

The expansion comes as leasing activity remains substantial. India recorded gross leasing volumes of 6.3 million sq. ft. in H1 2026, while vacancy stood at 11.2% as of June 2026. The incremental demand for new retail pipeline under construction stands at 45.9 million sq. ft., underscoring the scale of the development pipeline.