India's Retail Real Estate to Witness 18% Surge in Superior Grade Mall Spaces by 2022

JLL, India's largest real estate services firm today launched a report titled 'India's Retail Realty - A Changing Face' at the backdrop of India Retail Forum (IRF). The report showcases the evolution of organized retail in the country and factors affecting its dynamics.

September 05, 2018

  • Whopping 34 million sq. ft. of new mall space to be available by 2022
  • Superior malls will provide impetus to the rental growth
  • F&B & Entertainment to drive overall retail space demand

JLL, India's largest real estate services firm today launched a report titled 'India's Retail Realty - A Changing Face' at the backdrop of India Retail Forum (IRF). The report showcases the evolution of organized retail in the country and factors affecting its dynamics.

There would be 18% surge in supply of 'Superior' grade mall space across markets, the 'Average and Poor' supply will go down by 9% each as developers and promoters have taken cue from their past experiences. The report also captures the increasing interest of global retailers in entering the India market through JVs or opening up of standalone outlets and how the India market should prepare itself for a whole new world of opportunities coming its way.

Experiential, Omnichannel retail and E-commerce companies have given the much needed impetus to retail space, with traditional retailers going online and e-commerce firms opening up physical stores across geographies; especially Tier 3 & Tier 4 cities to give customer a look and feel of their offering.


* The year (2013-2017) witness extremely low new supply and hence are not advisable for granular analysis.

* Source: Real Estate Intelligence Service (JLL)

On one hand whilst there has been rationalisation in the demand and supply of mall stock, the key factors determining the success of malls in future will depend on the Product, Catchment and Experience provided to the customers. F&B and Entertainment are the two areas, which have become significant footfall drivers, apart from Apparel, which leads the pack.

The total number of malls in India stand at 253 (YTD 2018) with 77 new malls being added in the H1, 2018, (which has surpassed the number of malls added in 2017 which stood at 76). It is forecasted that the future pipeline of 5 years(2018 – 2022) will be 90 malls.


Commenting on the findings of the report, whilst giving an overview on the global retail world, outlining JLL's global retail strategy and key cross-border movements 

Naveen Jaggi, Chairman – JLL Global Retail Leasing Board and President Americas, Retail Advisory Services, Leasing and Capital Markets said, "These are exciting times for the retail industry globally and India is no exception; today, the Indian consumer is very evolved and travelling across the world experiencing the retail revolution. Lots of new trends are being witnessed and the industry is undergoing huge transformation from offline to online customizing it's offering to offer bespoke experiences to its customers. India is sure to witness a boom in retail, as there is a lot of investors' interest, from across the world".

Ramesh Nair, CEO & Country Head, JLL India said, "The Indian consumer of today is much evolved and is constantly looking for experiential shopping experiences - this indeed signifies that India as a retail market has come a long way. The mall developers have also taken cognizance of the same and have started focusing on design, layout & ambience and most importantly continuously working towards giving every touch point (in the journey of shopper) a special experiential treatment. Malls are responding with greater space share allocation to restaurants, cafes and theme based entertainment spaces."