Mumbai retail supply to grow by 1.4m sq ft between 2026 and 2029

More premium stock will be added to the market.

The future of the Mumbai retail market looks more optimistic as JLL analysts see premium malls continuing to expand their offerings with the introduction of several new local and global brands and categories to enhance the customer experience.

“The retail sector is expected to see more traction across all submarkets due to upbeat market sentiment. Around 1.40 million sq ft of supply is expected to become operational between 2026 and 2029, adding more premium stock,” JLL said.

Here’s more from JLL:

Demand in the Mumbai retail market witnessed a significant increase q-o-q since there were three mall completions in Q1 2025. Net absorption stood at 0.3 million sq ft, with major leases recorded in the Suburbs submarket.

Most of the leasing activity was recorded in the Suburbs and Prime South submarkets. Some popular brands, like Decathlon, Cinepolis, Timezone, Play N Learn, Lifestyle and Enamor, took up space across quality malls in the city during the quarter.

Three new mall completions in Q1 2025

Three new mall completions were recorded in Q1 2025: Sky City Mall and Aurum Square Mall in Suburbs and The Rise I in Prime South submarket. Around 1.35 million sq ft of supply became operational in the quarter.

Supply of around 1.4 million sq ft is scheduled to come on stream in the next four to five years.

Overall rents increase moderately

Rents rose moderately, driven by demand for prime malls with high occupancy and foot traffic, as well as new completions. This led to landlords taking firmer stances in negotiations. Quality retail spaces continued to command premium rates in the market.

Rents and capital values rose in all submarkets q-o-q, particularly in the Suburbs and Prime North, driven by the closure of an average-category mall and the strong performance of other premium malls. Yields decreased slightly as capital values outpaced rent growth.