India’s retail real estate market is on the cusp of a transformative phase, with a projected 45 million square feet of retail space set to emerge across major metropolitan cities by 2028. According to a detailed report by JLL India, 88 new retail projects are expected to be completed, underscoring the rapidly growing demand for organised retail infrastructure. This upcoming wave of development will take place in key urban hubs like Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai, reflecting a significant shift in India’s retail landscape.
This planned 45 million square feet of retail space surpasses the 38 million square feet developed over the past decade, indicating a strong upward trajectory in the sector. JLL India’s analysis shows that the new retail centres will be larger, with the average size increasing by 30% from 391,099 square feet in the previous decade to over 507,341 square feet by 2028. This move towards expansive retail spaces is designed to cater to evolving consumer preferences, integrating shopping, entertainment, dining, and leisure into comprehensive lifestyle destinations.
Delhi-NCR is poised to lead the retail space expansion, capturing 43% of the upcoming projects, while Hyderabad and Chennai are set to follow with 21% and 13%, respectively. The focus on these cities stems from their robust consumer bases and strong retail growth potential, making them prime locations for large-scale developments. This regional expansion reflects a strategic move towards markets with high consumer spending and demand for modern retail environments. Sustainability is also a key consideration in the development of these retail spaces. With the growing emphasis on eco-friendly construction, developers are focusing on green building practices to align with global sustainability goals. From energy-efficient designs to the use of sustainable materials, the upcoming retail spaces are expected to contribute towards a more environmentally responsible real estate market in India.
Additionally, the rising interest from institutional investors is a notable trend in the retail real estate sector. Foreign and domestic investors are increasingly drawn to greenfield and brownfield opportunities within the retail market, recognising the long-term growth potential. JLL India projects that institutional players will own 16% (7.2 million square feet) of the new retail space, highlighting the growing confidence in India’s retail sector. The combination of expanding consumer demand, a strategic focus on key metropolitan markets, and a shift towards sustainability and modernisation points to a vibrant future for India’s retail real estate. As these developments take shape, the country’s retail landscape will be poised for a significant transformation, offering both businesses and consumers new opportunities in high-quality, experience-driven spaces.
