India’s retail sector is witnessing unprecedented leasing momentum, with demand exceeding supply for the third consecutive year, according to the latest Releap report by Anarock Retail.
In 2024, over 6.5 million square feet of organized retail space was leased across major cities, driving mall vacancy rates down to 7.8 per cent and pushing rental values higher. Retailers are opting for larger store formats, with 2,000-5,000 square feet spaces seeing the highest transactions. Limited availability in malls is also fueling demand for 1,000-2,500 square feet stores.
Apparel & Accessories led leasing activity, accounting for 40 per cent of transactions in H2 2024, while Beauty & Personal Care and Departmental Stores saw an 11 per cent surge. Superior malls are operating near full capacity, with overall vacancy rates dropping from 15.5 per cent in 2021 to 7.8 per cent in 2024.
The report highlights a strong pipeline of upcoming malls, with NCR, MMR, and Hyderabad contributing 78 per cent of the total 377 million square feet planned supply by 2028. Key projects include World Mark, Aerocity (30 lakh square feet), Ramsons Trends Square Mall, Bangalore (10 lakh square feet), and Orion Mall, Hyderabad (10 lakh square feet).
High-street rental values continue to rise, with South Extension, Delhi, and Linking Road, Mumbai, commanding Rs 800-1,000 per square feet. Major tenants include Lifestyle International (1.57 million square feet), Reliance Projects (1.50 million square feet), and PVR Limited (1.11 million square feet).
Retailers are increasingly focusing on experience-driven formats, integrating shopping, dining, and entertainment to enhance customer engagement, reinforcing India’s booming retail ecosystem.
