India to Add 51.1 Million Sq Ft of Shopping Mall Space by 2031

 

By The Realty Times | Real Estate News Services

NEW DELHI: India's organised retail real estate sector is poised for a major expansion, with the country's top seven cities expected to add approximately 51.1 million square feet of shopping mall space by 2031. The addition will take the total mall stock across these markets to around 143.2 million sq ft, according to a report by property consultancy JLL.

Large-format malls are expected to dominate the upcoming supply, accounting for 56% of the planned additions. The trend reflects a growing focus on destination-led retail developments that combine shopping with entertainment, dining, leisure and other lifestyle experiences.

Of the 51.1 million sq ft of expected new mall space, approximately 28.7 million sq ft will comprise large-format developments.

These malls are being designed to offer more than conventional shopping facilities. Around 30–35% of their space is expected to be allocated to entertainment, food and beverage (F&B), and services. This could translate into approximately 9–10 million sq ft dedicated to these categories.

The shift highlights how developers are adapting to changing consumer preferences, with malls increasingly positioned as destinations for shopping, dining, recreation and social activities.

Alongside large shopping destinations, next-generation neighbourhood malls are expected to form another part of India's retail development pipeline.

These projects are projected to account for approximately 7.9 million sq ft, or 15% of the upcoming supply, according to JLL.

Neighbourhood malls are designed to serve local communities with convenient access to retail outlets, food options and everyday services. Their growth could support organised retail development in residential catchments beyond established city-centre shopping districts.

Delhi-NCR is expected to remain India's largest mall market. Its operational mall stock is projected to increase from approximately 29 million sq ft in the first half of 2026 to 48.6 million sq ft by 2031.

Hyderabad is also expected to play a significant role in the next phase of retail development. More than half of the upcoming mall supply across the seven cities is projected to be concentrated in Delhi-NCR and Hyderabad.

Bengaluru's mall stock is expected to reach approximately 22 million sq ft by 2031, while Mumbai is projected to increase its operational stock from 15.1 million sq ft in the first half of 2026 to 21.6 million sq ft.

The expansion plans come amid healthy leasing activity in India's organised retail market.

Across the top seven cities, gross retail leasing reached approximately 6.3 million sq ft during the first half of 2026. The total operational mall stock stood at 92.1 million sq ft as of June 2026, with a vacancy rate of around 11.2%.

JLL's assessment points to demand from domestic retailers expanding their networks and international brands entering or increasing their presence in India. The availability of quality retail space is expected to remain an important factor shaping the sector's growth.

The expansion of organised retail is also expected to bring greater consolidation among major mall developers.

According to JLL, the top three listed developers accounted for around 14% of operational retail stock in Tier-I markets in the first half of 2026. Their combined share could rise to approximately 21% by 2031.

The top 10 developers are projected to account for around 44% of total shopping mall stock by the end of the decade, reflecting the growing role of large, professionally managed retail assets.

India's projected addition of 51.1 million sq ft of mall space marks a significant expansion of the country's organised retail infrastructure. The growing emphasis on large-format developments, entertainment and dining indicates a shift towards malls that offer a broader consumer experience.

For the real estate sector, this expansion is expected to create opportunities for developers, retailers, investors and service providers. However, the success of new projects will depend on location, tenant mix, accessibility, occupancy and their ability to attract repeat visitors.

As India moves towards 2031, the retail property market is expected to become larger and more experience-focused, with large-format malls playing a central role in shaping the next phase of organised retail growth.