Mumbai, March 19, 2025 – The Indian retail sector continues to witness robust growth, driven by macroeconomic factors of rapid urbanization, rising affluence, and evolving consumer preferences. According to the latest RELEAP report by ANAROCK Retail, the sector has seen significant leasing momentum, with demand consistently outpacing supply for the third consecutive year.

Key Highlights:

• Leasing Momentum: In 2024, over 6.5 million sq ft of organized retail space were leased across major cities, surpassing the supply of new stock significantly. This has led to a reduction in vacancy levels in malls to 7.8%, causing rental values to increase.
• Store Size Preferences: Retailers have shifted their preferences to larger stores, with spaces admeasuring between 2000-5000 sq ft recording the highest share of transactions. Stores ranging from 1,000 to 2,500 sq ft are seeing increased demand due to limited availability in malls.
• Category Trends: The Beauty & Personal Care and Departmental Store segments witnessed an 11% surge in the second half of 2024. Apparel & Accessories continue to dominate, accounting for 40% of leasing transactions in H2 2024.
• Vacancy Rates: Vacancy in prominent malls continues to decline, with superior malls operating to nearly 100% capacity. Vacancy rates have dropped from 15.5% in 2021 to 7.8% in 2024.

Anuj Kejriwal, CEO & MD – ANAROCK Retail, say, “Significant upcoming supply is planned in NCR, MMR, and Hyderabad, accounting for nearly 78% of the total supply. Notable mall developments include World Mark, Aerocity with 30 lakh sq ft, Ramsons Trends Square Mall, Bangalore with 10 lakh sq ft, and Orion Mall, in Kokapet, Hyderabad – also with 10 lakh sq ft. Rental values across malls and highstreets are on the rise and are expected to continue their upward climb until new good quality supply is added.”