+
Indian retail sector needs 55 million sq ft of grade-A malls
Real Estate

Indian retail sector needs 55 million sq ft of grade-A malls

The Indian retail sector requires an additional 55 million square feet of grade-A mall space over the next four years to keep up with market demand, according to a recent report by Cushman & Wakefield. The report highlights that retail space per capita (RSPC) in India lags behind other South Asian countries, including Indonesia, the Philippines, Thailand, and Vietnam, indicating vast potential for retail expansion.

In the first half of 2024, no new mall supply entered the market, leaving the country’s total grade-A mall inventory at 61 million square feet across the top eight cities. This translates to just 0.5 square feet of RSPC, a figure considerably lower than that of smaller nations such as Indonesia, the Philippines, and Vietnam. Over the past eight years, the retail sector has seen an average of only 2.5 million square feet of grade-A mall space becoming operational annually, resulting in just 20 million square feet being added during this period, despite increasing consumer demand. This lack of supply has led to record-low vacancy rates in existing grade-A malls across major real estate markets.

Saurabh Shatdal, Managing Director of Capital Markets and Head of Retail at Cushman & Wakefield, stated that rising consumer confidence and increased discretionary spending underscore the sector's significant growth potential. He emphasised the need to address supply-side challenges and ensure the availability of high-quality retail spaces to fully capitalise on this growth.

The report also pointed out that the projected pipeline for grade-A retail mall projects totals only 18 million square feet for the 2024-2027 period. Additionally, the number of global brands entering India has surged, with the annual average rising from 12 pre-COVID to 25 by 2024. This presents an opportunity for Indian mall developers to deliver 9 to 11 million square feet per year over the next four to five years, which is 3.5 to 4.5 times the capacity added in the last eight years.

In the meantime, high streets and office-retail complexes (ORCs) are experiencing significant growth due to the continued scarcity of grade-A malls.

The Indian retail sector requires an additional 55 million square feet of grade-A mall space over the next four years to keep up with market demand, according to a recent report by Cushman & Wakefield. The report highlights that retail space per capita (RSPC) in India lags behind other South Asian countries, including Indonesia, the Philippines, Thailand, and Vietnam, indicating vast potential for retail expansion. In the first half of 2024, no new mall supply entered the market, leaving the country’s total grade-A mall inventory at 61 million square feet across the top eight cities. This translates to just 0.5 square feet of RSPC, a figure considerably lower than that of smaller nations such as Indonesia, the Philippines, and Vietnam. Over the past eight years, the retail sector has seen an average of only 2.5 million square feet of grade-A mall space becoming operational annually, resulting in just 20 million square feet being added during this period, despite increasing consumer demand. This lack of supply has led to record-low vacancy rates in existing grade-A malls across major real estate markets. Saurabh Shatdal, Managing Director of Capital Markets and Head of Retail at Cushman & Wakefield, stated that rising consumer confidence and increased discretionary spending underscore the sector's significant growth potential. He emphasised the need to address supply-side challenges and ensure the availability of high-quality retail spaces to fully capitalise on this growth. The report also pointed out that the projected pipeline for grade-A retail mall projects totals only 18 million square feet for the 2024-2027 period. Additionally, the number of global brands entering India has surged, with the annual average rising from 12 pre-COVID to 25 by 2024. This presents an opportunity for Indian mall developers to deliver 9 to 11 million square feet per year over the next four to five years, which is 3.5 to 4.5 times the capacity added in the last eight years. In the meantime, high streets and office-retail complexes (ORCs) are experiencing significant growth due to the continued scarcity of grade-A malls.

Next Story
Real Estate

No glass boxes!

India is moving away from the ‘glass box’ syndrome, all-glass façades that were widely used in commercial buildings in the last two decades but came at a significant environmental cost given the country’s predominantly hot and humid climate. Poor thermal performance, excessive heat gain and dependency on mechanical cooling systems made buildings with glass façades energy guzzlers and significantly increased their carbon footprint.That said, it’s important to be aware that “glass is not the enemy,” points out Heena Bhargava, Architect, Architecture Discipline. “How it ..

Next Story
Infrastructure Transport

Why do pavements fail?

India’s highways continue to expand at a healthy pace. But conversations on the surface quality of highways are growing louder because major deficiencies and black spots continue to be identified, and they are cause for concern.“Road surface roughness causes vehicle vibrations that, in turn, can affect the performance of drivers,” explains Dr V K Gahlot, Road Safety Auditor, Centre for Research and Sustainable Development (CfRSD). “Continuous exposure may induce fatigue, a contributory factor to road accidents. Road surface roughness also affects the vehicle operating cost...

Next Story
Infrastructure Urban

APAC Logistics Rents Fall for First Time Since 2020

Logistics rents across the Asia-Pacific region declined 0.4% year-on-year in H1 2025, marking the first annual drop since 2020, according to Knight Frank’s Logistics Highlights H1 2025 report. Despite global trade tensions and cautious occupier sentiment, India emerged as a standout performer, driven by robust manufacturing momentum and supply chain recalibration.Regional Trends and DivergenceWhile rents largely remained stable across most markets, regional differences became more pronounced:Mainland China continued to see rental declines, though the pace of decline moderated to 12.8% YoY, s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?