The country’s growing pool of affluent consumers is prompting mall operators to rethink how they segment retail space, with DLF looking to create a progression from accessible premium brands to luxury rather than treating each shopping destination as a standalone property.
The developer is sharpening the positioning of its malls around different stages of the consumer spending journey, from neighbourhood plazas and city-centre malls to aspirational luxury and ultra-luxury destinations. The strategy comes as retail consumption and spending across its portfolio grew 12% year-on-year in the June quarter, while rentals grew about 9%.
Pushpa Bector, group executive director and business head, retail, for the company, said younger consumers are likely to enter luxury through more accessible brands and move up as their purchasing power increases. She pointed to China and Singapore, where younger consumers have followed a similar trajectory.
“In Singapore and China about a couple of decades ago, the same demographic of millennial and Gen Z buyers as the kind we have today, would save up their first salary to buy the first luxury product like Coach, Michael Kors, etc., and then move to LVMH, Chanel and Dior. The same progression is likely to emerge in India,” Bector told Mint.
That is shaping how the developer is positioning its properties. Its DLF Promenade, for instance, is being repositioned towards aspirational and entry-level luxury, with new brands like Lululemon, Off-White, Ogaan, Armani Exchange, Hugo Boss, Coach, and Michael Kors among those moving into or opening at the developer’s premium malls. DLF Emporio will remain focused on luxury, and The Chanakya, ultra-luxury.
Retail footprint to double
The developer has about 5 million sq. ft. of retail space and plans to double its portfolio by 2030, with three new projects adding about 1.3 million sq. ft. in the current financial year. Two of the three new projects, Midtown Plaza in Delhi’s Moti Nagar and Summit Plaza in Gurugram, are already opening up. The third project, a roughly 700,000 sq. ft. mall in Goa, has received the occupation certificate, or final government approval to use a building, with finishing work and leasing underway. It will open in early 2027. The company finances its ventures through DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and Singapore sovereign wealth fund .
In 2024, the company announced that it would invest ₹2,200 crore in its Mall of India Gurugram project, which is currently under construction. Bector did not confirm this figure.
Samir Jasuja, founder and CEO of retail analytics company PropEquity, told Mint that the ability to build and operate large gives the developer an advantage in a market where high capital requirements and past oversupply have led to consolidation. “Retail is a business in itself, which has to be mastered. The consolidation of India’s mall industry has also strengthened the position of large operators. Many developers that entered the mall business during the 2002-06 period have since disappeared, leaving a smaller group of operators with the financial capacity and expertise to build and operate large-format retail destinations,” he said, adding that DLF, Phoenix Mills and Nexus Select Trust are among the larger players that have built scale and operating expertise in the sector.
Select Trust clocked over 137 million footfalls across its portfolio in 19 malls over about 10.7 million sq. ft. Phoenix Mills Ltd’s retail destinations saw consumption (retailer sales) cross ₹16,587 crore (+21% year-on-year), supported by over 400 new store openings and strong demand, particularly in the second half of the year. Retail Ebitda grew to ₹72,246 crore (+12% y-o-y).
The new Goa project is the developer’s first significant retail expansion outside the National Capital Region. It expects the mall to draw primarily from local consumers, with tourists providing an additional source of demand. The project is expected to have about 250 brands, three large anchor stores, a five-screen cinema, and a dedicated F&B floor for restaurants and food outlets.
Repositioning beyond luxury
Jasuja said the expansion also plays to the developer’s existing strengths, including landholdings in established markets and its experience operating large retail destinations. The ability to control the mall and build scale gives large developers greater leverage with brands, he said.
The three new projects are expected eventually to contribute about 20-22% to retail revenue, although they will take time to stabilize, the company said in its most recent earnings call in Q1 FY27. Stabilization implies the few years that new malls typically need to reach full occupancy and sales.
The retail portfolio currently attracts about five million visitors a month. But Bector said the focus is shifting from simply increasing footfall to increasing consumer spending during those visits. “It is more about what the spend of the footfall is and the consumption growth,” she said, adding that sales growth has also remained healthy. The existing portfolio is also benefiting from rental resets as leases come up for renewal. About one million sq. ft. became available for re-leasing over the past two years as leases reached six- or nine-year cycles, allowing the company to bring in new brands and reset rents. She added that rental growth at some properties has been in the 22-25% range, depending on the category and location for the one million sq. ft.
The repositioning extends beyond luxury. Its neighbourhood plazas are being used to host smaller, newer brands. The two plazas together have about 360 brands, including 125 newer boutique and direct-to-consumer labels. Smaller store formats, typically 300-500 sq. ft., allow the properties to accommodate brands that may not yet require conventional mall-sized stores.
Its existing retail portfolio is about 97% occupied, a level Jasuja said shows the strength of the locations and the developer’s ability to attract and retain brands.