70 pc upcoming malls in India to be of superior grade quality by 2026: Report

This change is being driven by rising consumer aspirations, higher spending, and a shift in strategy by both brands and developers, according to a new report by Cushman and Wakefield.

These new malls will offer better quality, service, and experience, marking a shift from simply expanding space to upgrading standards.

Saurabh Shatdal, Executive Managing Director at Cushman & Wakefield, said India’s retail sector is changing fast, and so are consumer expectations.

“Today’s shoppers are looking for thoughtfully designed spaces where the shopping experience is just as important as the product. High-performing categories like beauty, wellness, food and beverage, and athleisure are helping shape this new phase of Indian retail,” he added.

Superior Grade malls -- typically owned by well-known developers or institutional investors -- stand out for their high occupancy rates (above 85 per cent), premium brand mix, and rich customer services.

Currently, India has 61.5 million square feet of Grade A mall space, with about 63 per cent of it already classified as Superior Grade.

These malls have performed better than their peers, with average rents increasing by 29 per cent since 2019. As of now, rents in these malls average around Rs 315 per square foot per month.

Metro cities like Delhi-NCR, Mumbai, Bengaluru, and Pune continue to lead in high-quality retail spaces, with Delhi-NCR alone holding 21.75 million square feet of Grade A malls.

Superior grade malls in these metros are attracting strong interest from investors and retailers, resulting in steady rental growth and low vacancy rates of just 3-4 per cent.

The report highlights the role of India’s young and increasingly affluent middle class in this shift. With a median age under 30, Indian consumers are seeking more premium and experience-based shopping.