Large malls to dominate retail ecosystem; 51.1 million sq. ft. mall space expected by 2031

New Delhi: India will see an emergence of shopping mall space in the upcoming years, with generational shifts and increasing interest among people in technology, design, and experiential outings.

According to a report from JLL, over the next five years, Indian real estate developers may add 51.1 million sq. ft. of new shopping mall space, propelling the total shopping mall stock to 143.2 million sq. ft. by the end of 2031.

India recorded gross leasing volumes of 6.3 million sq. ft. in the first half of 2026. India’s retail stock reached 92.1 million sq. ft. across the top seven cities, with a vacancy rate of 11.2 per cent as of June 2026.

The report further suggests that the major factors driving the probable expansion are evolving consumer demand, the influx of international brands, and the expansion of domestic brands.

Moreover, 56 per cent of the total upcoming mall supply would comprise large-format malls catering to customers seeking experiential and destination shopping. More than half of the retail supply would be concentrated in Delhi and Hyderabad.

“The shift toward large-format, experiential destinations signals a fundamental transformation in how consumers engage and how consumption patterns are evolving with changing generational preferences,” said Saket Amrit, Head of Retail Services, India, JLL.

Entertainment, F&B, and services would account for nearly one-third of the upcoming supply.

The nature of the expansion and allocation of supply is a means of catering to consumers with changing preferences. The supply is extending beyond traditional commerce and incorporating lifestyle destinations that blend technology, design, and experience. These assets, which are expected to emerge as commercial engines in the upcoming retail ecosystem, would comprise approximately 28.7 million sq. ft. Technology and design would be key differentiators, offering a blend of lifestyle, leisure, and legacy.

These large-format developments will allocate approximately 30–35 per cent of their space to entertainment, food and beverage, and services categories, adding nearly 9–10 million sq. ft. of space for these three categories alone to go beyond traditional commerce.

India will also witness the emergence of next-generation neighbourhood malls through 2031, though their share will remain limited to 15 per cent of the upcoming supply, at approximately 7.9 million sq. ft.

India's top three listed developers currently own approximately 14 per cent of operational retail stock in Tier 1 markets as of H1 2026, and their share in operational mall stock may expand to nearly 21 per cent by the end of 2031.

The top ten developers are projected to account for 44 per cent of the total shopping mall stock by 2031, the report noted.

(With inputs from IANS)