Sunday, 19 October 2025
India’s retail property market is entering a new phase as demand for organized shopping continues to rise across major cities while fresh opportunities take shape on the urban fringe.
In 2025, strong consumer spending and a surge of new brands helped urban malls regain momentum. Major centres in Mumbai, Delhi, and Bengaluru have seen most of their premium space fill up, with shoppers returning in numbers last seen before the pandemic. The city malls that once struggled to attract visitors are now enjoying near full occupancy, driven by food, fashion, and entertainment outlets that continue to anchor India’s urban lifestyle.
Investors are also rediscovering confidence in this sector. Long-term funds and property companies have increased their exposure to retail assets, viewing well-located malls as stable sources of income in an economy that remains one of the fastest-growing in the world.
Yet, much of the new activity is no longer confined to downtown zones. A quiet but noticeable shift is taking place in India’s suburban belts. Districts such as Thane and Bhiwandi near Mumbai, or Whitefield on the outskirts of Bengaluru, are witnessing the rise of open-air retail parks — larger plots of shops and outlets that combine everyday essentials, home furnishings, and leisure spaces. These sites cater to families and workers in growing residential areas, offering convenience and affordability outside the congestion of city centres.
This expansion reflects how India’s consumer geography is changing. As workplaces, homes, and industrial corridors spread further out, retail is adapting to follow the population. Developers are increasingly experimenting with hybrid models that blend shopping, entertainment, and community spaces to match evolving habits.
The challenge, say analysts, will be ensuring connectivity and careful planning so that these new retail clusters complement city-based malls rather than compete with them. With India’s organized retail share expected to continue rising in the coming years, the outlook suggests that both central and suburban markets will be vital to the next phase of growth.
What’s taking shape is a more diversified retail network — one that mirrors India’s own urban transformation, where everyday shopping and lifestyle experiences are no longer confined to the heart of the city but spread across its expanding edge.
