Rising Urban Affluence and Consumer Sophistication Redefine Retail Landscape

New Delhi, November 14, 2025: As urban incomes rise and lifestyles evolve, India’s consumers are no longer chasing the lowest price—they’re chasing the best experience. The country is witnessing a clear shift from value-led buying to choice-making driven by brand trust, aesthetics, and the joy of discovery. Shoppers today want more than products; they want ambience, storytelling, and a sense of belonging to a certain lifestyle. This isn’t a trend—it’s a structural transformation in how and where Indians choose to spend, with an increasingly confident urban class rewarding retailers and destinations that offer curation, comfort, and a memorable experience.

As this consumer shift gathers pace, the numbers show why organised retail is expanding so aggressively. According to CII-Knight Frank’s report, India’s organised retail consumption already stands at approximately INR 8.8 trillion; yet, nearly 90 per cent of the total market remains unorganised, leaving an enormous runway for modern formats to scale. What’s even more telling is how consumers are choosing to spend within these spaces.

Harinder Singh Hora, Founder Chairman, Reach Group, says, “The expectations of the urban shopper have fundamentally changed, signalling the need for an organized retail era; consequently, high streets today operate very differently than in the past, with consumers demanding quick access, familiar brands, strong F&B options, and an environment that feels organised. We understand that the future of urban convenience lies not just in single formats, but in the integrated ecosystem where the best elements of the high street—such as clear zoning, strong pedestrian flow, and reliable parking—are seamlessly combined with organized malls and professional offices all within the same complex, ensuring that the developments function efficiently and truly match the comprehensive needs of the evolved urban consumer.”

In malls, apparel, food & beverages, and beauty & wellness makes significant brand-mix. The consistent category mix across formats reflects a consumer base that is increasingly lifestyle-driven—seeking fashion, dining, and wellness as part of a holistic experience rather than isolated transactions.

Mohit Goel, Managing Director, Omaxe Group, says, “When we look at NCR, the direction of growth is very clear: organised retail is strengthening, and Faridabad is beginning to reflect the same fundamentals. The report puts the national organised retail footprint at about 134 million sq ft, and the consumption pattern is consistent; apparel accounting for 30–35 per cent of revenues and F&B for 20–25 per cent across malls and high streets. We’re seeing that exact mix play out in Faridabad as more national and international brands come in. From a developer’s standpoint, this tells us the market is maturing and ready for more structured, high-quality retail spaces.”

Besides, this demand is reshaping the country’s retail geography just as quickly. India today hosts ~134 million sq ft of organised retail space across 32 cities, a footprint that shows how consumption has decisively spilled beyond the traditional metros. What’s more telling is the pipeline: the top eight cities alone are expected to add over 30 million sq ft of new supply by 2028, much of it in formats that prioritise curation, experience, and tenant quality. It’s clear that developers are no longer building for volume—they’re building for a more sophisticated consumer who values design, convenience, and the social energy of a well-crafted retail environment.

Pankaj Jain, Founder and CMD, SPJ Group, says, “Gurugram’s commercial push over the years has naturally translated into strong retail leasing, but what’s interesting is how malls and high streets are capturing most of it. Consumers today want a mix of fashion, dining, entertainment, and relaxed social spaces—and that’s exactly what’s driving momentum in Gurugram’s high-potential, yet untouched micro-markets. In our experience, Gurugram is thriving with emerging retail destinations, and interestingly, the Old Gurgaon market is beginning to experience this dynamic change. Backed by the infrastructure upgrades, industrial and economic base, and discerning consumer base, the retail real estate is set to soar high in the region.”

Ravinder Choudhary, Vice President, Vegas Mall, adds, “What’s changing in India’s retail landscape is the expectation of quality, and malls have become the most visible response to that shift. As consumers grow more discerning, they look for brands, dining, services, and experiences that feel cohesive, and malls are the one format that can deliver all of it under one roof. In the changing landscape of retail, malls are no longer just hubs for shopping; they have evolved into community-conscious spaces where consumers seek integrated and meaningful experiences. At Vegas Mall, we place a strong emphasis on hyperlocal community connect and encourage it through engaging events such as Dev Deepawali, Dandiya Night, and art exhibitions like Anant Ki Aur, among many others. These initiatives not only bring people together but also create a sense of belonging and cultural pride. We have witnessed phenomenal success in doing so. A well-run mall today raises the bar with sharper storefronts, better-managed common areas, curated tenant mix, and a sense of order that today’s shoppers value. For us, the focus remains simple: to build centres that reflect this new sophistication and consistently give people a reason to choose a mall over any other retail touchpoint.”

Therefore, India’s retail growth story will be shaped far more by quality than sheer square footage. Tier II and Tier III cities are beginning to mirror this shift, with rising incomes and stronger urbanisation pushing demand for organised formats beyond the metros. The runway for organised retail remains long, with significant room for formats that prioritise experience over volume.