Scarcity meets surge: why India’s top malls are becoming more expensive and crowded

This counter-intuitive trend, where scarcity drives prices but demand accelerates, shows how high-quality retail space has become a strategic asset in India’s consumption boom | Photo credit: ipopba

The buzz is not limited to domestic players. Global retailers are also competing for a foothold in prime properties.

This counter-intuitive trend, where scarcity drives prices but demand accelerates, shows how high-quality retail space has become a strategic asset in India’s consumption boom.

Operators such as Nexus Select Trust target approximately 50 percent of international rentals in their portfolio. “There is a clear gap between supply and demand for good premium malls,” said Pratik Dantara, Chief Investor Relations Officer and Head of Strategy at Nexus Select Trust.

“In our malls, we have seen a spread of almost 20 percent in the last five years, and the same trend continues this year. Our average rental rate is about ₹136 per sq ft per month, and if we were to re-rent today, we could command about 20 percent higher rates,” he added.

Dantara added that Nexus Select Trust maintains an international brand mix of 46 percent and expects this to stabilize around 50 percent as the company continues to optimize its portfolio.

In Bengaluru, rates have increased by about 5 percent year-on-year, said Rahul Phukan, Country Business Development Leader at Decathlon India. “Landlords have become less flexible, but we continue to prioritize locations that deliver consistent footfall and long-term brand value,” he said. Rising occupancy costs, he added, have reinforced Decathlon’s focus on efficiency and omnichannel integration rather than store downsizing.

Sunil Munshi, Senior Vice President – ​​Retail, Brigade Group, said rental prices have increased by 15 to 20 percent in two years, driven by discretionary spending and a shift towards experiential formats. “Cities like Bengaluru, with a limited supply of quality space, ensure that premium malls that offer robust brand mixes can command premium rental prices,” he said.

Brigade’s Orion Gateway, for example, has added big names like Uniqlo and Lego, both of which are making their debut in South India this year.

Fashion remains the largest leasing segment, accounting for approximately 50 percent of total rentals, followed by entertainment (20 percent) and food and beverage (20-30 percent).

According to Kamakshi Mantri, Chief Strategy Officer of Mantri Square Mall, “We are operating at a retail occupancy rate of almost 98 percent, with new malls such as Whitefield, Sarjapur Road and Hebbal quickly catching up.”

Even as rents rise, India’s premium malls prove that scarcity can come with rising demand.

Published on November 11, 2025