New Delhi, Sep 28 (IANS) Indian real estate developers are expected to add nearly 51.1 million sq. ft. of new shopping mall space over the next five years, propelling the total shopping mall stock to 143.2 million sq. ft. by the end of 2031, a report said on Monday.
The report from JLL said that the significant expansion is driven by surging consumer demand, a strong influx of international brands and expansion by domestic brands.
India recorded gross leasing volumes of 6.3 million sq. ft in the first half of 2026. India’s retail stock reached 92.1 million sq. ft. across the top 7 cities with a vacancy rate of 11.2 per cent as of June 2026.
Of the total upcoming mall supply, nearly 56 per cent will comprise large-format malls designed to cater to the experiential and destination needs of shoppers. Over half of the upcoming retail supply is expected in Delhi NCR and Hyderabad.
“The shift toward large-format, experiential destinations signals a fundamental transformation in how consumers engage and how consumption patterns are evolving with changing generational preferences,” said Saket Amrit, Head of Retail Services, India, JLL.
Nearly one-third of upcoming supply is dedicated to entertainment, F&B, and services, signalling expansion beyond traditional commerce to create lifestyle destinations that blend technology, design, and experience.
These assets, totalling approximately 28.7 million sq. ft., are poised to emerge as powerful commercial engines in the retail ecosystem of the future, with technology and design as key differentiators offering a blend of lifestyle, leisure and legacy.
These large-format developments will allocate approximately 30-35 per cent of their space to entertainment, Food & Beverage, and services categories, infusing nearly 9-10 million sq. ft. of space for these three categories alone to go beyond traditional commerce.
India will also witness the emergence of next-generation neighbourhood malls through 2031, though their share will remain limited to 15 per cent of upcoming supply at approximately 7.9 million sq. ft.
India’s top three listed developers currently own approximately 14 per cent of operational retail stock in Tier 1 markets as of H1 2026, and their share in operational mall stock may expand to nearly 21 per cent by the end of 2031.
Top ten developers are projected to comprise 44 per cent of total shopping mall stock by 2031, the report noted.
—IANS
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