Real Estate

Nearly 25 Mn sq. ft. Mall Space to be Added in Top 7 Cities in Next 4-5 Years

New mall space supply India
  • NCR & Hyderabad account for 46% of total new upcoming supply, closely followed by Bengaluru at 19%
  • In 2022, top 7 cities added 2.6 Mn sq ft of mall space – increasing by 27% against 2021
  • Bengaluru & Hyderabad were the only cities with new supply addition in 2022
  • Rentals in malls appreciated by nearly 15%, is higher than the pre-pandemic levels
  • The retail sector attracted around USD 1,473 Mn b/w 2019 – 2022
  • The share of organised retail doubled – from 9% in FY19 to 18% presently, growing at a CAGR of 20%
  • Online retail market in India is approx. 25% of total organised retail market, likely to be over 37% by 2030

Mumbai, 22 February 2023: Driven largely by rising consumption, the rebound in Indian retail market has been exemplary in 2022 which is favourably impacting retail real estate across the country, finds a joint report by real estate consultants ANAROCK and Retailers Association of India (RAI). Buoyed by the growth, developers now plan to add nearly 25 Mn sq ft of new mall space across the Top 7 cities over the next 4-5 years, finds the report titled ‘India Retail Real Estate: REvived, REshaped, & REinforced’. The report was released at the Retail Leadership Summit 2023, where ANAROCK was knowledge partner.

NCR and Hyderabad account for nearly 46% of the total new upcoming supply, closely followed by Bengaluru at 19%.

Back in 2022, the top 7 cities added over 2.6 Mn sq ft of mall space which was 27% more than the preceding year (2021).

“The festive season, devoid of restrictions and any fear of the contagion, was exemplary with record high volumes and sales value,” says Anuj Kejriwal, CEO & Managing Director – ANAROCK Retail. “Sales value estimated during the festive season in late 2022 was INR 2.5 Lakh Crore, nearly 2.5 times compared to the previous year.  The revival of consumer sentiments and penchant for consumption is therefore being promptly acted upon by the majority of brands, retailers, and mall developers. The new planned mall supply across the top 7 cities is testimony to the developers’ expansion strategy.”

“Further, the retail market size is expected to touch USD 2 Trillion by 2032, growing from USD 690 billion in 2021, facilitating the organised retail sector to grow at 25% CAGR.”

Kumar Rajagopalan, CEO, Retailers Association of India (RAI), says, “The report also highlights that the Indian retail sector attracted around USD 1,473 Mn between 2019 and 2022, of which 76% of total investments came in 2019 itself. Among the cities, Hyderabad and MMR accounted for nearly 40% of the total PE investments in the sector.”

“Data further indicates that back in 2022, the top 7 cities added nearly 2.6 Mn sq ft of mall space during 2022, which increased by 27% over the previous year (2021),” says Rajagopalan. “Among the cities, Bengaluru and Hyderabad were the only cities which saw new mall supply addition during 2022.”

Presently, the top cities have over 51 Mn sq ft of mall stock across the country with NCR, MMR, and Bengaluru accounting for 62% of the total stock.

In terms of avg. rentals in malls, these appreciated by nearly 15% in 2022 over the previous year, thus reaching higher than the pre-pandemic levels. Bengaluru registered the highest uptick in rentals of around 27%, followed by Kolkata at 20% in 2022 over the previous year.

Other Major Highlights

  • As per industry estimates, the e-retail market is anticipated to reach USD 120-140 Bn by FY26, increasing at 25%-30% annually over the next five years.
  • The sales volume of the organised retail segment in FY22 was estimated to be USD 52 Bn and is estimated to grow to USD 136 Bn by 2028 with a CAGR of 17%.
  • Currently, a high degree of integration of physical and digital is taking place to provide an interactive and all-inclusive experience.

Read Also:

CEO & Editor
I'm Ved Prakash, Founder & Editor @Newsblare Media, specialised in Business and Finance niches who writes content for reputed publication such as,, Motley Fool Singapore, etc. I'm the contributor of different... news sites that have widened my views on the current happenings in the world.

Leave a Reply

Your email address will not be published. Required fields are marked *