A recent JLL report forecasts a 45 million sq. ft. surge in organized retail space across Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai by 2028. This transformative shift to experience-centric retail caters to today's consumer looking for more than just shopping. Expect mega malls exceeding 1 million sq. ft. and two monumental projects surpassing 2.5 million sq. ft. in Delhi NCR. Driven by global influences and investor interest, these developments promise a diverse mix of stores, entertainment zones, and dining experiences. With lease-based models allowing curated offerings, a new era of retail awaits, offering a dynamic and immersive shopping journey.
A recent report by JLL, a real estate consultancy, predicts a significant surge in organized retail space in Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai.
Over the next five years, from the second quarter of 2024 to the end of 2028, these cities are expected to see a staggering 45 million square feet of new shopping space added. This dwarfs the growth witnessed in the entire previous decade (2014-2023), which saw roughly 38 million square feet of new retail space constructed.
This surge in retail space reflects a changing consumer landscape. Today's shoppers are seeking more than just stores; they crave experiences. Big, impressive shopping centers that go beyond just retail are becoming the new trend. These one-stop destinations cater to the modern shopper who wants a fun day out, not just a quick shopping trip. Expect entertainment zones, restaurants, leisure activities, and a wider variety of stores all under one roof.
The report suggests these new developments will be much larger than those built in the past. The average size of a new retail space is expected to jump by 30%, from around 391,000 square feet to over 507,000 square feet. Additionally, brace yourselves for 12 massive projects exceeding 1 million square feet each! These giants will make up a significant chunk (37%) of the new space. Delhi NCR will be leading the pack with two mega malls exceeding a staggering 2.5 million square feet each!
This retail revolution is being driven by a combination of factors. Increased global travel has exposed Indian consumers to new shopping experiences, making them crave something more exciting than traditional stores. Additionally, large institutional investors see Indian retail as a lucrative opportunity, and are increasingly financing these grand developments. With 78% of the upcoming retail space being lease-based, developers gain greater control over tenant selection and management, allowing them to curate a diverse mix that aligns with their vision for the development.
The Indian retail landscape is on the point of a major transformation. With 45 million square feet of new, experience-driven retail space coming to major cities, shoppers can look forward to a more exciting and holistic shopping experience in the coming years.
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