MUMBAI, December 21 (ANI): India’s retail sector is poised for a surge in investment, with over USD 3.5 billion expected to flow into malls over the next three years, as Western shopping centers face closures and declining footfalls, according to real estate consultancy Anarock.
While nearly 1,200 mall stores in the US have closed since 2020, and almost 40 percent of empty malls have been repurposed or rezoned, India’s retail market is experiencing robust growth driven by strong consumer demand and rising institutional investor confidence.
Anuj Kejriwal, CEO of Retail Leasing and Industrial & Logistics at Anarock Group, said, “88+ foreign brands have entered the Indian market and are seeking to expand aggressively. Several more global brands are in the pipeline, aiming for the limited Grade-A assets currently available.”
India’s retail resilience is attributed to the country’s young consumer base, limited organized retail competition, and supportive FDI policies. A key driver of confidence is the extreme undersupply of quality retail space, with per capita retail stock among the lowest globally compared with the US and China.
“This gap, combined with India’s per-capita income nearly doubling over the last decade, has created a demand-supply mismatch virtually unheard of in global retail,” Kejriwal added. Grade-A malls are operating at 95-100 percent occupancy, with long waiting lists for prime zones. Rental growth has consistently surpassed pre-pandemic levels, and leasing cycles are outpacing construction cycles, a rarity worldwide.
Indian malls are increasingly lifestyle destinations, anchored in entertainment, dining, and social experiences, rather than purely retail. Daily foot traffic in major malls exceeds 20,000 on weekdays and surpasses 40,000 on weekends. Food and beverage and entertainment contribute 30-35 percent of total footfall, supporting a retail mix largely insulated from the challenges facing e-commerce in Western markets.
Anarock noted that India’s e-commerce penetration remains around 8 percent, significantly lower than over 20 percent in China and the US, allowing physical retail to thrive. The consultancy projected that India is on track to become a USD 6 trillion consumption economy by 2030, positioning its retail sector as a major global investment destination.
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