India’s Retail Sector Shifts Focus to Malls as High Street Leasing Declines

India’s retail sector has witnessed a significant shift in focus from high street leasing to malls in the second quarter of 2025. According to recent reports, high street leasing has declined by 26% in Q2 2025, with Hyderabad and Mumbai leading the way. This decline is attributed to the increasing popularity of malls among retailers, who are seeking to capitalize on the footfall and brand visibility that these establishments offer. The rise of e-commerce has also led to a decline in high street leasing, as retailers are opting for online platforms to reach their customers. However, malls have been able to adapt to this change by incorporating experiential retail and entertainment options, making them more attractive to consumers. The decline in high street leasing has also been driven by the high rents and lack of availability of quality space in prime locations. In contrast, malls offer a more affordable and convenient option for retailers, with a range of amenities and services that enhance the shopping experience. Hyderabad and Mumbai have emerged as the leaders in this trend, with a significant decline in high street leasing and a corresponding increase in mall-based retail. The city of Hyderabad has seen a decline of 30% in high street leasing, while Mumbai has witnessed a decline of 25%. Other cities, such as Delhi and Bengaluru, have also seen a decline in high street leasing, although to a lesser extent. The shift towards malls is expected to continue, with retailers seeking to capitalize on the benefits of these establishments. The Indian retail sector is expected to grow at a rate of 10% in the next five years, driven by the increasing demand for retail space and the growth of e-commerce. The rise of malls is also expected to lead to the development of new retail formats, such as experiential retail and entertainment centers. The decline of high street leasing is also expected to lead to a decline in rents, making it more affordable for retailers to operate in prime locations. However, the shift towards malls also poses challenges for retailers, who must adapt to the changing consumer behavior and preferences. The Indian government has also introduced policies to support the growth of the retail sector, including the easing of foreign direct investment norms and the introduction of a national retail policy. The growth of the retail sector is also expected to lead to the creation of new jobs and opportunities, both directly and indirectly. The shift towards malls is also expected to lead to the development of new infrastructure, such as roads and public transport, to support the growth of these establishments. In conclusion, the decline of high street leasing and the rise of malls is a significant trend in the Indian retail sector, driven by the changing consumer behavior and preferences. The shift towards malls is expected to continue, with retailers seeking to capitalize on the benefits of these establishments. The Indian government has also introduced policies to support the growth of the retail sector, and the growth of the sector is expected to lead to the creation of new jobs and opportunities.

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