India’s retail sector is witnessing a significant surge, and is expected to grow by 50% to 134 million sq ft by the end of 2028 from 89 million sq ft at present, according to a report by JLL. Close to 88 new retail developments with a cumulative area of around 45 million sq ft are expected to come on stream in the seven cities — Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai – over the next 5 years.
Commenting on this, Sandeep Chillar, Founder & Chairman of Landmark Group, said, “The retail sector is witnessing strong growth driven by increased urbanization and consumer demand which is driving the need for organised and high-quality retail spaces. As consumers seek unique shopping experiences that combine convenience, entertainment, and community, retail space developers are constantly working on creating the best and most enhanced projects to meet these demands. The findings of the report show the indicative 50% increase in new retail supply in the next five years which is perfectly aligned with the growth trend across cities.”
He further added, “With developers’ focus on creating integrated shopping destinations that cater to evolving consumer preferences, Delhi-NCR has been witnessing a healthy surge in new retail supply for the last couple of years. Driven by a blend of innovation in retail concepts and strategic location, Gurugram is likely to remain the prime retail hub in NCR.”
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The report highlights that out of the 88 upcoming retail developments in the next five years, there will be 12 large-sized projects encompassing area of at least 1 million sq. ft each. These projects will contribute a substantial portion, amounting to 37% of the total supply expected until 2028.
Delhi-NCR is on track to become India’s retail powerhouse, according to Harinder Singh Hora, Founder Chairman of Reach Group. He said, “With the highest share of new retail space nationwide, the region caters to growing consumer demand for engaging shopping experiences.”
He emphasized that “this growth isn’t just about convenience; it will significantly impact the regional economy. The influx of diverse retail destinations will elevate the customer experience and create a vibrant economic ecosystem, solidifying Delhi-NCR’s position as India’s premier retail hub.”
Interestingly, industry analysis shows that new development goes beyond the metro cities. While tier 1 cities remain key expansion hubs, tier 2 and 3 cities are emerging as promising markets and attracting new players. Leading developers are coming with massive retail development in tier 2 and 3 cities offering a holistic retail experience to modern consumers.
On small cities’ retail growth potential, Abhishek Bansal, Executive Director of Pacific Group, said, “With the sharp shift in the consumer lifestyle, tier 2 & 3 cities are evolving into vibrant hubs of growth and innovation, which are immensely increasing their realty prospects. The retail sector is witnessing a renaissance in these cities, fueled by a rising demand for big, branded malls in the region. As the presence of pioneering malls is increasing, our already-established Pacific Mall in Dehradun has added to the city’s allure.”
The Pacific Group has recently expanded In Dehradun. Bansal added, “Aligning with the evolving consumer preferences, our brand-new Mall of Dehradun is a bigger and more enhanced version of our existing mall in the city. As Uttarakhand’s largest shopping, entertainment, and culinary destination, Mall of Dehradun underscores our commitment to innovation, sustainability, and excellence in retail development.”
The Indian retail sector is on the cusp of a major transformation, with a projected 50% increase in retail space by the end of 2028. This highlights India’s emergence as a key player in the global retail market, thus enhancing shopping experiences and significantly boosting the retail landscape
Amish Bhutani, MD, Group 108, said, “The projected addition of retail developments will not only enhance the retail landscape but also meet the demands of today’s consumers. We envision aligning with this development, curating organized retail spaces, and elevating our consumers’ experience.”
With evolving consumer preferences, developers are dedicated to retail growth driven by evolving trends and economic expansion.