India soon to add 30 million sqft of shopping mall space by end of 2027:Report

The real estate report unveiled that,India will add 30 million square feet of shopping mall space to its retail real estate portfolio over the next three years. According to the estimation given by the data of CRE Matrix, by 2036, it will touch 200 million square feet mark.

Reportedly, the first shopping mall was started in 1991and after that it took 22 years to build 50 million square feet of shopping mall stock in the country. The leading cities were Delhi-NCR, Mumbai Metropolitan Region and Bengaluru.

The next goal towards 100million square feet milestone was crossed in the first half of 2024, which was spearheaded by Delhi,Bengaluru and upcoming markets such as Hyderabad and Pune. 

The report further emphasized that from 2018 to 2024, a significant transformation has occurred, with premium and bridge-to-luxury brands establishing themselves as the most prominent players in the Indian market.

Consequently, the mid-market segment, which previously held a dominant position in the retail landscape and accounted for 38% in 2018, has been supplanted by brands that offer value for money and affordable luxury options.

According to the information presented in the report, the share of brands within the luxury sector has risen from 16% to 21% as of today. The most significant growth has been observed in value-for-money brands, which have expanded their market presence from 8% in 2018 to 13% in 2024.

The report highlighted that the existing portfolio of over 7,300 brands in India is poised to take advantage of anticipated growth. It is essential for shopping malls, high streets, and brands to align their strategies with evolving demand trends and shifting consumer shopping preferences.

Furthermore, the report indicated that consumer durables and apparel have become the predominant category, representing 36% of the total retail market in the top six cities of India. Notably, from a business value standpoint, the non-ethnic unisex category has led the market since 2018, currently holding a 17% share. On the other hand, the consumer staple has gone up to second largest category, contributing 25% to the business value.

Moreover, keeping the pace with the consumption patterns of India, the jewellery and precious stones segment along with sportswear, and bar and brewery, have doubled their contribution to 11 % over the last 5 years.