India’s retail sector stands out as one of the most vibrant and swiftly-changing markets globally, propelled by a burgeoning consumer demographic, escalating urbanization, and the advent of digital technologies. Central to this evolution are two primary retail formats: high streets and shopping centers. Each format offers a unique shopping experience, yet they work in tandem to influence the purchasing behaviors and preferences of consumers nationwide. Within India’s multifaceted retail environment, both high streets and shopping centers are essential in addressing the diverse needs of consumers, enhancing foot traffic, and shaping the future landscape of retail.
A recent report by Knight Frank indicates that as of 2023, India had a shopping center inventory totaling 125 million square feet across 340 operational properties in 29 cities. This includes the leading eight markets: Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, the National Capital Region (NCR), and Pune. The shopping centers consist of institutionally-owned properties spanning various grades. Historically, Tier-I cities have been at the forefront of real estate development—encompassing residential, office, and retail sectors—accounting for 75 percent of the total gross leasable area of 11.6 million square meters across 263 shopping centers. Among these, NCR, Mumbai, and Bengaluru lead in terms of gross leasable area.
Commenting on this trend, Siddharth Katyal, CEO of Bhumika Group, remarked that Faridabad and Gurugram are emerging as two of the most vibrant hubs within the National Capital Region, each offering unique advantages. Faridabad is experiencing rapid growth in both residential and commercial sectors, bolstered by the Transit-Oriented Development (TOD) policy and infrastructure enhancements such as the Delhi-Mumbai Expressway, Regional Rapid Transit System (RRTS), and forthcoming metro lines, positioning it as a prime location for businesses and residents alike.
Also Read: Fixed Deposits: 7 banks offering more than 8% return on fixed deposits
“Gurugram, often referred to as the ‘Millennium City,’ continues to attract global corporations, multinational companies, and startups due to its superior infrastructure, expanding metro connectivity, and initiatives such as the Global City project, which enhance its status as a leading commercial center. Both Gurugram and Faridabad boast a dynamic retail environment: Gurugram’s shopping malls offer a luxurious retail experience featuring top brands and entertainment options, while Faridabad’s newly-developed retail areas provide a variety of choices. Collectively, these cities are shaping the future of the NCR, seamlessly integrating work, lifestyle, and leisure into a cohesive urban experience,” Katyal added.
The retail industry in India has experienced remarkable growth, driven by rising disposable incomes, a burgeoning middle class, and a transition towards contemporary shopping formats. This transformation has significantly influenced the real estate sector, prompting developers to renovate retail spaces. Traditional marketplaces are being replaced by shopping malls, lifestyle centers, and mixed-use developments that combine residential, commercial, and recreational elements, fostering vibrant urban environments.
Ajendra Singh, Vice President of Sales and Marketing at Spectrum@Metro, remarked that the retail landscape in India is undergoing a significant transformation, with malls leading this change. “As developers embrace new trends, innovative designs, and sustainable practices, they are creating not merely shopping venues but comprehensive lifestyle hubs. By emphasizing technology and experiential retail, malls are redefining the shopping experience. Malls in Delhi NCR are evolving into multifunctional urban spaces, attracting visitors who can engage in a wide range of activities throughout the day, thereby paving the way for a bright future for India’s retail sector,” he said.
The commercial real estate sector in Delhi-NCR, especially along the Noida Expressway, is witnessing remarkable growth. This development opens up numerous opportunities for both retailers and investors, with a variety of retail projects anticipated in the near future. The sector is being transformed by extensive infrastructure advancements, rapid urbanization, increasing consumer demand, and overall economic progress.
Sanchit Bhutani, Managing Director of Group 108, stated, “Noida Expressway is emerging as a vital growth corridor, positioning itself as a premier destination for retail investment, which promises substantial returns and long-term development. Enhanced connectivity and infrastructure, along with its proximity to IT parks, residential areas, and multinational corporations, are driving a notable demand for retail and office spaces in the region. This environment is fostering significant expansions in major shopping malls and generating profitable opportunities for businesses and retailers.”
India is expanding its economic footprint, with the commercial and retail real estate sectors playing a pivotal role in this advancement. The increasing demand for modern office spaces, coupled with the growth of high-street and mixed-use retail developments, indicates a bright future for the industry. As the commercial landscape continues to progress, Delhi NCR remains a key player in this evolution, presenting substantial opportunities for investors, developers, and retailers.
Sunil Kumar Jindal, Chief Executive Officer and Director of ManSan Group, said, “India’s urban environment is on the brink of significant transformation, with numerous innovative mixed-use developments poised to redefine the landscape and enhance retail and commercial experiences. These initiatives, located in diverse regions, will effectively combine hospitality, commercial, and recreational areas, establishing new standards for contemporary urban environments. Strategically situated near the Sarojini Nagar metro station, the Downtown office and retail spaces present a distinctive opportunity for investors and buyers to leverage a prime location with considerable long-term potential.”
The evolution of high streets and shopping centers, thus, is altering the business landscape, providing vibrant, multifaceted retail experiences that merge shopping, entertainment, and leisure. As developers persist in their efforts to innovate and incorporate modern technologies, these venues are transforming into lifestyle destinations rather than mere retail centers. The future of India’s retail sector is filled with immense possibilities, and with cities such as Delhi-NCR at the forefront, both retailers and investors stand to gain from the ongoing expansion of this dynamic market.