New mall projects to add up to 2.5m sq ft of space in Bengaluru by 2028

About 0.7m sq ft is expected to be completed by end-2026.

Bengaluru’s retail market is set to see a new wave of shopping mall developments over the next few years, with up to 2.0 to 2.5 million sq ft of new mall space expected by 2028, according to global real estate consultancy JLL.

JLL said upcoming projects such as Phoenix Market City Phase 2, Forum 13 Degree North, and Prestige Park Grove Mall are expected to contribute to the city’s future retail pipeline, with Brigade Cornerstone Utopia Mall scheduled to open in the suburbs by the first quarter of 2026.

Despite 0.7 million sq ft of expected mall completions by end-2026 in the Suburbs, JLL expects demand from expanding retailers to keep pace with new completions. The consultancy projects that city-wide mall vacancy will remain relatively stable at around 8.5% to 9.0%, as brands continue to expand across Bengaluru’s retail landscape.

Retail leasing activity strengthened toward the end of 2025, with major malls such as One Sobha Mall, Forum Rex Walk, and Mantri Square Mall attracting strong tenant interest. According to JLL, brands including Massimo Dutti, Zudio, Funky Monkey, and Chicco were among those securing space in prominent malls.

High street retail locations also continued to see healthy demand, driven primarily by food and beverage outlets, jewellery retailers and home furnishing brands. JLL noted that tenants such as Joyalukkas and Nilkamal were among those active in the market.

Overall mall inventory in Bengaluru remained steady at about 14.5 million sq ft in late 2025, with vacancy edging down slightly as leasing momentum absorbed available space.

Looking ahead, JLL expects the city’s retail property market to remain on a growth trajectory. Retail rents are forecast to rise by around 2.5% to 3.0% annually in the near term, while retail capital values are projected to increase by 4.5% to 5.0% per year through 2026, supported by rising investor optimism and sustained retailer demand.