Mumbai has recorded the highest retail rental growth of nearly 15–20% year-on-year across top malls, while Grade A malls in Delhi-NCR have reached near-full occupancy with vacancy levels dropping to around 0–2%, according to a report by ANAROCK and Images Group.
The report, titled Leasing Trends in Malls Across Top Metropolitan Cities in India, highlighted growing demand from international retailers, entertainment anchors and premium lifestyle brands amid limited availability of high-quality retail space.
According to the , Delhi-NCR’s Grade A+ malls have seen stronger rental appreciation of around 8–12% year-on-year compared to 6–8% growth in Grade A malls, reflecting higher footfalls, better tenant productivity and stronger asset positioning.
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NCR sees 19 million sq ft retail pipeline
The NCR retail market is expected to witness nearly 19 million sq ft of new retail supply between 2026 and 2031, signalling continued developer confidence in organised retail. The upcoming pipeline includes a mix of Grade A and emerging Grade A developments across multiple micro-markets.
Anuj Kejriwal, CEO – Retail and CEO – EMEA at ANAROCK Group, said the strong demand in NCR is being driven by expansion plans by international brands and organised retailers.
“On a year-on-year basis, Delhi-NCR’s Grade A+ malls have witnessed a stronger rental appreciation of ~8–12%, outperforming Grade A assets at ~6–8%, indicating a widening gap driven by superior footfalls, tenant productivity, and asset positioning. This trend reinforces the flight-to-quality observed among retailers, with top-tier malls disproportionate demand,” he said.
Mumbai’s premium malls such as Phoenix Palladium and Jio World Drive continue to command some of the country’s highest rentals, with monthly rents reaching as high as ₹777 per sq ft in select developments, the report said.
According to the report, Bengaluru is expected to add nearly 5.03 million sq ft of retail supply by 2031. Average mall rentals across Grade A and A+ developments currently stand at around ₹200–250 per sq ft for vanilla stores, positioning the city as a relatively stable and balanced retail market compared to other Tier-I cities.
The report also said that vanilla store rentals in Pune’s Grade A malls average around ₹175–225 per sq ft, while rentals at the asset level range between ₹170 per sq ft and ₹300 per sq ft.
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Over 45 million sq ft retail supply expected across top cities
The report estimated that over 45 million sq ft of new retail supply will be added across the top seven Indian cities between 2026 and 2031. Based on existing Grade A retail stock and prevailing capital values, India’s organised retail market currently presents an estimated investment opportunity of nearly USD 25–30 billion.
The report also identified a major redevelopment opportunity across nearly 40–50 million sq ft of underperforming Grade B and C malls in major cities.
Among other key markets, continues to maintain stable vacancy levels of around 5–8% and is expected to add more than 5 million sq ft of retail space by 2031. Hyderabad is emerging as a major supply hub with around 7.1 million sq ft of upcoming retail stock, while Pune is witnessing strong retailer activity led by brands such as IKEA and Uniqlo.
The report also pointed to a growing shift towards suburban retail expansion. In Mumbai, upcoming supply is increasingly concentrated in areas such as Thane, Borivali and Panvel, while Bengaluru’s retail growth is spreading along Sarjapur Road and other peripheral residential corridors.