India’s Mall Market Defies Global Slump as Billions in Investment Line Up

India’s mall sector is bucking the global retail downturn as Western malls struggle with closures and vacancies. Anarock says strong consumer demand, a young population, low retail supply, and limited e-commerce penetration are driving growth. With near-full occupancy and lifestyle-led formats, Indian malls could attract $3.5 billion in investment over three years.

While shopping malls across much of the Western world are struggling to stay relevant, India’s retail landscape is moving in the opposite direction. According to real estate consultancy Anarock, international investors and global brands are increasingly turning their attention to India, where demand for organised retail space continues to surge even as malls elsewhere face widespread closures.

In the United States, the picture has been stark. Since 2020, nearly 1,200 mall-based stores have shut down, and rising vacancy levels have forced close to 40 percent of underutilised malls to be rezoned or converted for alternative uses. These trends have underscored a broader structural challenge for brick-and-mortar retail in mature Western markets.

India, however, is charting a very different course. Anarock points to robust consumer spending, a young demographic profile, and growing confidence among institutional investors as the key forces behind the country’s retail revival. The consultancy estimates that Indian shopping malls could attract more than $3.5 billion in capital inflows over the next three years.

Anuj Kejriwal, CEO for Retail Leasing and Industrial & Logistics at the Anarock Group, notes that global interest is being driven in part by brand expansion. More than 88 international retailers have already entered the Indian market and are now looking to scale up rapidly. Several additional global brands are also preparing to enter, but many are facing a shortage of suitable Grade-A retail assets in prime locations.

Unlike Western markets, where saturation and slowing demand have weighed heavily on performance, India’s organised retail sector remains underdeveloped relative to its population size. Anarock highlights that the country’s per capita retail stock is among the lowest globally, especially when compared with the United States and China. This shortfall has become more pronounced as incomes have risen, with India’s per capita income nearly doubling over the past decade.

The result is a supply-demand imbalance rarely seen in global retail markets. High-quality malls are operating at near-full capacity, with occupancy levels typically ranging between 95 and 100 percent. Waiting lists are common for premium zones, rental values have moved beyond pre-pandemic benchmarks, and leasing activity is often progressing faster than new construction—an unusual scenario in most international markets.

India’s broader consumption story is also strengthening the outlook. Anarock projects that the country could emerge as a $6 trillion consumption economy by 2030. Unlike many Western malls that rely heavily on traditional retail formats, Indian malls have evolved into lifestyle hubs, placing strong emphasis on entertainment, dining, and social experiences.

Footfall numbers reflect this shift. Major malls regularly attract more than 20,000 visitors on weekdays, with weekend traffic often exceeding 40,000. Food and beverage outlets, along with entertainment offerings, now account for roughly 30 to 35 percent of overall footfall, helping create a balanced tenant mix that is less vulnerable to online competition.

Another factor appealing to global investors is the relatively low penetration of e-commerce in India. At around 8 percent, online retail remains far below the levels seen in the US and China, where digital sales exceed 20 percent. Rather than undermining physical retail, Anarock suggests that e-commerce in India is complementing malls, reinforcing their role as experiential destinations rather than purely transactional spaces.

Taken together, these dynamics position India as a rare bright spot in the global retail real estate landscape—one where malls are not retreating, but expanding, modernising, and drawing sustained international interest.