Future of Retail Is on Street: Why High Street Retail Is Outshining Malls

By Pankaj Jain, Founder and CMD, SPJ Group

The retail real estate segment is at the end of a massive transformation. A process that began two to three years ago has led to a paradigm shift in how commercial real estate is perceived. While the residential projects were getting grander, the commercial segment, on the other hand, started veering more towards boutique.

High-streets in cities like Delhi-NCR have started becoming the go-to retail spaces for both shoppers and brands. Why? It all boils down to convenience, spontaneity and a strong local market.

The shift isn’t just anecdotal—hard numbers back it. According to a recent report by Cushman & Wakefield, retail leasing in high streets across Delhi-NCR jumped a massive 57 per cent YoY in Q1 2025, accounting for 61 per cent of the region’s total leasing activity. Gurugram led the way, followed by Noida and Delhi.

So what’s behind this high street momentum?

For one, as land became scarce and their prices soared, planning a mall that took up huge space turned into a costly proposition. High streets, in contrast, fitted perfectly into this scenario. Further, their nearness to vibrant residential hubs added to their appeal.

Unlike malls that often require a planned visit, high streets are naturally integrated into daily life. They’re closer to where people live and work, which means more spontaneous visits and regular foot traffic.

Moreover, for many brands—especially in fashion and food—high streets offer more flexibility. The leases are shorter, the operational costs are lower and it’s easier to adapt quickly to changing market needs. In addition to the above factors, rising rental value, a reflection of the growing stature, further enhanced their charm.

Top high street locations, such as Khan Market and Galleria Market, command some of the highest rents in the country—ranging from INR 1,150 to INR 1,650 per square foot—on par with international retail hubs. Brands see the value.

However, this doesn’t mean malls are fading away. They’re reinventing themselves. Over 12.3 mn sq ft of new Grade A/A+ mall space is expected to come up in major cities by 2026. These aren’t your everyday malls—they’re upscale, curated spaces focused on luxury shopping, entertainment zones and high-end dining. Their role is shifting from everyday shopping to special-occasion destinations.

At the same time, with limited space for new premium malls and increasing demand for neighbourhood-focused retail, high streets are poised for long-term success.

New growth corridors such as Sohna Road and Golf Course Extension in Gurugram are evolving into buzzing high street zones whereas Old Gurugram is finding its sweet spot again amongst brands and retailers. Areas like MG Road, Palam Vihar and sectors 2, 4, 7, 14, 15, 17 and 18 in old Gurugram hold immense potential for retail business growth.

In Delhi, market trends have noted that areas like Kamla Nagar (where rents jumped 25 per cent in a year) and Lajpat Nagar are drawing renewed interest. Such places are also benefiting from the brand momentum as both global and Indian brands are opening flagship stores on high streets to tap into the shopper’s attention.

The future of retailisn’t about choosing between malls and high streets. It’s about using the right format for the right purpose. For convenience and easy access, high streets are winning. Their flexibility, accessibility and ability to connect with the community make them the heartbeat of urban retail. Even though malls will still have their place, the times and dynamics both are changing and high streets are certainly gaining more traction at present.

DISCLAIMER: The views expressed in the above piece are personal and solely those of the writer. They do not necessarily reflect Realty&More’s views.