Pune: The Indian retail sector continues its strong growth trajectory, driven by rapid urbanization, rising disposable income, and evolving consumer preferences. According to the latest RELEAP report by ANAROCK Retail, the sector has witnessed significant leasing momentum, with demand consistently outstripping supply for the third consecutive year.
In 2024, more than 6.5 million sq. ft. of organized retail space was leased across major cities, far exceeding new supply levels. This supply-demand gap has resulted in a sharp decline in mall vacancy rates, which now stand at 7.8%, down from 15.5% in 2021. The sustained demand has also pushed rental values higher, particularly in prime retail locations.
Retailers are increasingly opting for larger store formats, with spaces ranging between 2,000 to 5,000 sq. ft. recording the highest number of leasing transactions. Due to limited availability in malls, there is also rising demand for stores between 1,000 to 2,500 sq. ft.
The retail sector continues to see notable category-wise trends:
Beauty & Personal Care and Department Stores witnessed an 11% growth in leasing activity in the second half of 2024.
Apparel & Accessories remained the dominant category, accounting for 40% of total leasing transactions in the same period.
Premium malls are now operating at nearly full capacity, reflecting the growing preference for organized retail spaces.
Upcoming Supply and Rental Trends (2024-2028)
Mall Space Expansion in Key Cities
The upcoming supply of Grade A malls (larger than 2 lakh sq. ft.) will be concentrated in a few metro regions, with the National Capital Region (NCR), Mumbai Metropolitan Region (MMR), and Hyderabad leading new developments.
City Planned Mall Space (sq. ft.) Share (%)
NCR: 17,630,000 : 46.76%
MMR: 6,310,000 : 16.74%
Hyderabad: 5,600,000 : 14.85%
Bangalore: 5,230,000 : 13.87%
Kolkata: 1,500,000 : 3.98%
Chennai: 1,190,000 : 3.16%
Pune + PCMC: 240,000 : 0.64%
Total: 37,700,000 : 100%
(Data includes only Grade A malls and excludes standalone anchors.)
Declining Vacancy Rates in Malls
Vacancy levels in major malls have consistently declined over the years, signaling increased demand for organized retail spaces:
Year: Vacancy Rate (%)
2019: 14.0%
2020: 15.4%
2021: 15.5%
2022: 12.0%
2023: 9.0%
2024: 7.8%
Key High-Street Rental Trends (2024-2028)
Rental values for high-street retail locations continue to surge as demand remains strong:
Location Rental Range (INR per sq. ft.)
South Extension, Delhi 800-1000
Linking Road, Mumbai 800-1000
Lajpat Nagar, Delhi 350-450
Indiranagar, Bangalore 280-320
MG Road, Bangalore 250-350
Anna Nagar, Chennai 250-280
Banjara Hills, Hyderabad 200-300
Jubilee Hills, Hyderabad 150-250
(Figures represent average carpet rentals for inline stores on the ground floor.)
Notable Mall Developments & Major Retail Tenants
According to Anuj Kejriwal, CEO & MD, ANAROCK Retail, 78% of upcoming mall space will be concentrated in NCR, MMR, and Hyderabad.
