Strong retailer demand tightens Bengaluru mall market

Leasing demand was at 0.2 million sq ft in Q1.

Bengaluru's retail market continued to benefit from strong leasing demand in Q1 2026, with approximately 0.2 million sq ft of mall leasing recorded despite limited availability in premium centres, according to JLL.

Most leasing activity was concentrated in the Suburbs submarket, reflecting minimal vacancy in Prime City and Secondary locations. Fashion and apparel, food and beverage and jewellery retailers remained key demand drivers, with brands including Bershka, Uniqlo and H&M securing space during the quarter.

No new malls were completed during Q1, while total inventory declined to 14.4 million sq ft following the withdrawal of Brookfield/Cosmopolitan Mall from the market. Vacancy fell by 110 basis points quarter-on-quarter as leasing activity remained robust.

JLL said rents and capital values continued to increase, supported by an imbalance between demand and available quality retail space.

Looking ahead, new projects including Phoenix Market City Phase 2, Forum 13 Degree North, Forum Sarjapur Road and Brigade Cornerstone Utopia Mall are expected to strengthen the city's retail pipeline and support continued growth.