India’s retail real estate market is set for a significant expansion as urbanisation, growing consumption patterns, and economic growth reshape the country’s retail landscape. With a forecasted 45 million square feet of retail space set to be developed across the top seven cities by 2028, this surge indicates the increasing demand for large-scale, experience-driven shopping environments. According to a report from JLL India, the country’s retail market is entering a new phase, with developers focusing on creating comprehensive destinations that cater to the evolving needs of modern consumers.
Over the next five years, Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai will see the addition of 88 new retail properties. This upcoming supply surpasses the 38 million square feet of retail space developed in the last decade, marking a pivotal shift in the sector’s trajectory. Importantly, the average size of new retail developments is also set to grow by 30%, increasing from 391,099 square feet to over 507,341 square feet. This reflects the trend towards creating experience-oriented spaces that combine shopping, entertainment, dining, and leisure under one roof, offering a holistic retail experience for consumers.
The growing appeal of larger retail centres is largely driven by changing consumer preferences. With exposure to global retail trends and increasing expectations for unique shopping experiences, modern consumers are seeking more than just stores—they want destinations. Developers are responding by integrating diverse amenities such as entertainment zones, dining options, and recreational areas, creating spaces that appeal to families, millennials, and affluent shoppers alike. This shift is critical for cities like Delhi-NCR, which is expected to lead the retail supply with 43% of new projects, followed by Hyderabad (21%) and Chennai (13%).
Sustainability is playing a crucial role in the planning of these developments. As cities across India embrace eco-friendly practices, developers are incorporating green building standards into their projects, focusing on energy-efficient designs and sustainable materials. This commitment to sustainability not only addresses environmental concerns but also enhances the long-term viability of these retail spaces, aligning with global efforts to reduce carbon footprints in urban areas. The retail real estate boom is also attracting institutional investors. JLL India reports that 16% of the upcoming retail space will be owned by institutional players, underscoring the growing confidence in India’s retail sector as a viable investment avenue. As these projects take shape, India’s retail real estate market is set to transform, offering expansive, multi-faceted shopping experiences that cater to the needs of its rapidly urbanising population. With significant opportunities for developers, investors, and consumers alike, the future of retail real estate in India looks dynamic and promising.
