By 2026, 70% of New Malls in India Set to Be Superior Grade Quality: Report
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Synopsis
A recent report reveals that over 70% of new Grade A malls in India, expected by 2026, will be Superior Grade (A+), reflecting changing consumer expectations and spending habits.
Key Takeaways
- Over 70% of new malls by 2026 will be Superior Grade.
- Superior Grade malls feature high occupancy rates above 85%.
- Average rents in these malls have risen by 29% since 2019.
- Major cities like Delhi-NCR lead in high-quality retail spaces.
- The shift is driven by a young, affluent consumer base.
Mumbai, April 15 (NationPress) The retail real estate landscape in India is undergoing a significant shift as more than 70% of the anticipated 12.3 million square feet of new Grade A mall space slated for 2025 and 2026 will be classified as Superior Grade (A+), according to a recent report released on Tuesday.
This transformation is a result of increasing consumer expectations, heightened spending power, and a strategic pivot by both brands and developers, as highlighted in the latest findings from Cushman and Wakefield.
The upcoming malls are set to provide enhanced quality, service, and customer experience, signaling a transition from mere spatial expansion to a focus on elevating standards.
Saurabh Shatdal, the Executive Managing Director at Cushman & Wakefield, noted that India’s retail sector is evolving rapidly, paralleling shifts in consumer desires.
“Modern consumers are searching for well-designed environments where the shopping journey is as crucial as the products offered. High-performing segments such as beauty, wellness, food and beverage, and athleisure are instrumental in defining this new chapter in Indian retail,” he stated.
Superior Grade malls—typically developed by renowned builders or institutional investors—are distinguished by their high occupancy rates (over 85%), premium brand offerings, and exceptional customer services.
Currently, India boasts 61.5 million square feet of Grade A mall space, with approximately 63% already categorized as Superior Grade.
These malls have outperformed competitors, with average rents surging by 29% since 2019. Presently, the average rent in these establishments is around Rs 315 per square foot monthly.
Major metropolitan areas such as Delhi-NCR, Mumbai, Bengaluru, and Pune are at the forefront of premium retail space, with Delhi-NCR alone accounting for 21.75 million square feet of Grade A malls.
Superior Grade malls in these urban centers are drawing significant interest from both investors and retailers, resulting in consistent rental growth and low vacancy rates of merely 3-4%.
The report emphasizes the influence of India’s youthful and increasingly wealthy middle class on this transition. With a median age below 30, Indian consumers are on the lookout for more luxurious and experience-oriented shopping options.
