Indian Retail Market Shows Divergence: Strong Rental Growth in Select Cities Amid High…

Rental growth has been strongest in select markets, with Mumbai and Bengaluru recording a three-year average of 22% for shopping mall rentals. Pan-India rental growth averaged 11%, while Mumbai recorded the highest average rent at Rs 438 per square foot. The market is increasingly rewarding quality and differentiation, leading retailers to become more selective about locations and formats.

The retail landscape is evolving with a large pipeline of 40.4 million sq ft of upcoming shopping mall supply through 2030, much of it concentrated in Hyderabad and Gurgaon. This shift includes a growing focus on larger, destination-led assets and office-led amenity retail, which currently stands at 51.7 million sq ft.