India’s Retail Sector to attract $3.5 Billion Investments

Retail investments in India continue to gain momentum. While e-commerce has expanded rapidly, shopping malls are witnessing equally strong demand. Unlike Western markets where retail space demand has declined, India’s retail sector remains resilient. Malls in India have evolved beyond shopping destinations into centres for entertainment, dining, and social interaction, driving sustained demand for retail space. This has attracted significant interest from global investors.

According to an ANAROCK report, India’s retail sector is expected to attract $3.5 billion in investments over the next three years, supported by strong returns, rising consumption among young demographics, and growing institutional confidence. Between 2021 and the first nine months of 2025, over 88 foreign brands entered the Indian retail market.

India’s per capita retail stock remains among the lowest globally—4–6 sq ft in Tier-1 cities and 2–3 sq ft in Tier-2 and Tier-3 cities. Grade-A mall space availability is just 0.6 sq ft per capita, compared to 23 sq ft in the US and 6 sq ft in China. Grade-A retail assets in India deliver annual returns of 14–18%, making them attractive investment avenues.