India's Retail Revolution: 16.6 Million Sq Ft of New Shopping Malls by 2026

India is poised for a significant expansion in retail real estate, with 16.6 million sq ft of new prime retail spaces in shopping malls expected by the end of next year, according to Anarock. The real estate consultant revealed that new Grade A supply will largely emerge in the 2025 and 2026 calendar years, with Hyderabad and Delhi-NCR leading the charge, accounting for 65% of the fresh supply.

Industry experts, including Anarock CEO Anuj Kejriwal, highlight a growing mismatch between the supply and demand of Grade A malls. While 2022 and 2023 saw increased leasing activity, resulting in a demand-supply gap, this year was notably affected by approval delays due to elections. Despite this, Anarock projects over 12.6 million sq ft of retail space leasing across top cities in the next two years.

The expansion of retail real estate extends beyond metros into tier II and III cities, as noted by Pacific Group's MD, Abhishek Bansal. Emerging markets like Jaipur are becoming attractive hubs for retail development amid rising consumer and investor interest. Delhi NCR is particularly expected to grow, bolstered by improving infrastructure and lifestyle changes, according to industry insiders.

(With inputs from agencies.)