High streets outpace malls in retail shift
India’s retail sector is undergoing a structural shift, moving from purely transactional spaces to experience-led destinations. According to the ANAROCK Retail RELEAP 2026 report, leasing activity remained strong in the second half of 2025, with 4.3 million sq ft absorbed across the top seven cities.
This growth is driven by retailers adopting formats that offer in-person experiences not replicable online.
The apparel segment led leasing activity, followed by entertainment, hypermarkets, and food and beverage. Retailers are increasingly favouring mid-sized stores between 1,000 and 5,000 sq ft, now seen as the optimal balance between visibility and efficiency.
A key trend is the rising dominance of high streets. With limited space in premium malls, brands are shifting to high street micro-markets, pushing up rents in these locations while mall rentals remain largely stable.
Industry experts say this reflects a broader change in consumer behaviour. Anuj Kejriwal of ANAROCK Group said the sector has moved beyond a focus on scale. Robin Mangla of M3M India noted that single-purpose malls are giving way to mixed-use developments combining housing, retail and leisure.
In Gurugram, the shift is particularly visible. Mitul Jain of SPJ Group said food and apparel brands are targeting high streets in established catchments to stay closer to consumers. Girish Kamble of Tribeca Developers added that demand for luxury and experience-led formats is rising.
Looking ahead, supply remains strong. Delhi-NCR and Hyderabad are expected to contribute nearly 70 per cent of upcoming retail space. Developers are focusing on accessible, service-oriented formats, with integrated retail also gaining importance in segments such as senior living, said Rishabh Periwal of Pioneer Urban. Key highlights: 4.3 million sq ft leased in H2 2025 across top seven cities. Delhi-NCR and Hyderabad to drive 70% of future supply.
