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India's Malls Transform: Bigger, Experience-Led Destinations Emerge as Retail Shifts
M
Moneycontrol•26-09-2026, 14:48
India's Malls Transform: Bigger, Experience-Led Destinations Emerge as Retail Shifts
- •India's new malls are projected to more than double in average size to 0.59 million sq ft by 2026-30, up from 0.25 million sq ft pre-2000, reflecting a shift towards experience-led destinations.
- •Consumer-facing categories like fashion, F&B, entertainment, leisure, and wellness now account for 72% of mall leasing, a significant rise from 54% a decade ago, while traditional anchors like department stores decline.
- •Developers are increasingly building malls around a broader consumption and experience ecosystem, moving away from reliance on a few large-format anchors to drive footfalls.
- •India expects 40.4 million sq ft of new mall supply by 2030, with Hyderabad and Gurugram leading the pipeline, highlighting growing divergence and the importance of location and asset quality.
- •Retail lease dynamics are changing, with shorter average tenures (70 months) but longer lock-in periods (28.6 months), as landlords and retailers renegotiate risk in a maturing market.
Key Questions Answered
According to a CRE Matrix report, the average size of new shopping malls is projected to more than double, growing to 0.59 million square feet during 2026-30 compared to 0.25 million square feet in the pre-2000 era.
Hyderabad and Gurugram together account for 51 percent of the identified upcoming mall supply pipeline of 40.4 million square feet expected through 2030.
In the first half of 2026, the average retail lease tenure declined to 70 months from 75 months in 2021, while the average lock-in periods increased to 28.6 months from 22.2 months.
