1 month ago
Retail Space Supply Drops 57% in Top 7 Cities
The supply of new retail spaces in shopping malls in the top seven cities of India has dropped by 57% to 0.9 million square feet during the first quarter of 2024.
This decline is due to delays in construction and the challenges developers face in creating Grade A retail spaces.
Despite this, the demand for retail spaces remains high, with gross leasing standing at 4.1 million square feet in the first half of 2024.
The vacancy rates have dropped to 6.7% in the first half of 2026.
Developers struggle with issues like land availability, rising costs, approval delays, and complex construction processes, while retailers find it difficult to secure suitable spaces due to the limited supply.
Fresh supply of retail spaces in malls declined 57% to 0.9 million sq ft during January-March across seven major cities.
Gross leasing of retail spaces in malls stood at about 4.1 million sq ft in the first half of 2024.
The seven major cities are Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata.
Developers face challenges like land availability, rising costs, approval delays, and complex construction processes.
Vacancy levels have dropped to 6.7% in H1 2026.
- Who
- Anarock, a real estate consultant
- What
- Fresh supply of retail spaces in shopping malls declined 57% to 0.9 million sq ft during January-March across seven major cities.
- Where
- Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata
- When
- January-March 2024
- Why
- Due to delays in construction activities and challenges in developing Grade A retail spaces.
Developers' Perspective
Retailers' Perspective
Supply Constraints
Developers' Perspective
Developers face challenges like land availability, rising costs, approval delays, and complex construction processes.
Retailers' Perspective
Retailers struggle to find suitable spaces due to limited supply, despite steady demand.
Key facts
- Fresh Supply (Jan-Mar 2024)
- 0.9 million sq ft
- Gross Leasing (H1 2024)
- 4.1 million sq ft
- Top 7 Cities
- Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Kolkata
- Vacancy Rate (H1 2026)
- 6.7%
- New Supply (2023)
- 5.3 million sq ft
- Leasing (2023)
- 6.5 million sq ft
- New Supply (2024)
- 1.1 million sq ft
- Leasing (2024)
- 6.5 million sq ft
- New Supply (2025)
- 5.2 million sq ft
- Leasing (2025)
- 13 million sq ft
Quotes
Anuj Kejriwal
CEO – Retail & CEO – Europe, Middle East & Africa at Anarock Group
“"The shortage of Grade A mall space is not simply a function of developers failing to respond to demand. Building a successful large-format retail asset is considerably more complex than delivering other forms of real estate."”
freepressjournal.in
“"The supply problem is cumulative and escalating - data of India's top seven cities over the past 16 years shows a persistent mismatch between Grade A retail supply and leasing demand."”
freepressjournal.in










