Superior-Grade Malls Set to Lead 70% of Supplies in FY26

Superior-grade malls are characterized by high occupancy rates, exceeding 85%, and more upmarket tenants

- Suneera Tandon

India's retail landscape is undergoing a significant transformation with a strong emphasis on premiumisation. According to a report released by real estate consulting firm Cushman & Wakefield on Tuesday, over 70% of the anticipated 12.3 million square feet (sq. ft) of new Grade A mall supply expected in India within the next two years will fall under the superior grade category.

Of the 12.3 million sq. ft of new Grade A mall supply projected for 2025 and 2026, a substantial 8.6 million sq. ft will be classified as superior grade, per the report titled "Premiumisation of India's Retail Sector—Upscaling, Upgrading and Evolving," unveiled at the MAPIC India Shopping Centre event Tuesday.

Consumer aspirations, increased discretionary spending, and a significant shift in brand and developer strategies are driving the emergence of a more sophisticated, experience-driven retail ecosystem in India.