Mumbai to see 1.9m sq ft of new premium retail stock over the next four years

No new supply is expected for the rest of 2025.

Mumbai’s retail growth is fueled by evolving consumer tastes and demand for quality space, according to a JLL report. A maturing consumer base with higher incomes is driving domestic expansion and attracting international brands to this high-potential market.

“The retail sector is expected to see growth across all submarkets, driven by positive market sentiment. Approximately 1.90 million sq ft of supply is expected to become operational between 2026 and 2029, adding more premium stock,” the report added.

Here’s more from JLL:

Mumbai’s retail market experienced a significant q-o-q increase in demand in Q3 2025, mainly due to robust leasing activity in the recently opened malls. Net absorption reached 0.4 million sq ft, with major leases recorded in the Suburbs submarket.

Most of the leasing activity was recorded in the Suburbs submarket in Skycity Mall and Aurum Square Mall. Some popular brands, like Burma Burma, Birkenstock, Hamleys, PF Chang’s, US Polo and Muji took up space across quality malls in the city during the quarter.

No new mall completion in Q3 2025

No new mall completions were recorded in Q3 2025, although 1.35 million sq ft of supply did commence operations in the first quarter of 2025. No further supply is expected for the rest of 2025.

An additional 1.9 million sq ft of supply is projected to become available within the next four to five years.

Overall rents increase moderately

Q3 rental growth was moderate, driven by high occupancy, foot traffic in prime malls, and the recent completions. This strengthened landlords’ negotiating stance, enabling quality assets to secure premium rates.

Rents and capital values increased q-o-q in all submarkets, notably in the Prime North and Suburbs submarkets. This was driven by the strong performance of premium malls. Yields decreased slightly with capital values outpacing rent growth.