New Delhi: India's luxury retail market is entering a new phase of expansion, but a shortage of premium mall space is emerging as the biggest hurdle for global brands, according to Bharti Real Estate managing director (MD) and chief executive officer (CEO) S.K. Sayal.
Bharti Real Estate is betting on that gap with The Mall at Worldmark in Delhi's Aerocity, a luxury retail destination scheduled to open by March 2028, Sayal told Mint. Part of Bharti Real Estate's broader $2.5 billion Worldmark 2.0 development the project will feature a 3 million sq. ft mall, about 1 million sq. ft of high-street retail, luxury brands, restaurants and indoor entertainment.
“The economy is growing, the number of millionaires is rising and people are travelling much more. The real question is whether we are ready with the real estate,” Sayal said.
India's luxury market has long been underserved, with many brands operating just one or two stores to cater to consumers across the country.
"Today, one or two luxury brand stores are serving the whole country. That will change over the next few years. As consumption grows and the right real estate becomes available, brands will expand with multiple stores,” he added.
Sayal's optimism is echoed by recent industry research. A BCG-Altagamma report released in early July said rising affluence and evolving consumer behaviour are reshaping the country’s luxury landscape, while projecting the global personal luxury market to grow 2-5% in FY26, driven by broader lifestyle spending and local wealth.
Separately, Knight Frank said India accounted for 2.8% of the world's ultra-high-net-worth individuals (UHNWIs) in 2026, up from just over 2% five years earlier. The country's UHNWI population is projected to increase from 19,877 in 2026 to 25,217 by 2031, pointing to a steadily expanding base of luxury consumers.
The comments come amid tightening supply in organized retail real estate. According to real estate consultancy Anarock’s latest research, retailers leased 4.1 million sq. ft. of Grade ‘A’ mall space across the top seven cities in the first half of 2026, while only 0.9 million sq. ft. of new supply was added. As demand has outpaced new construction, vacancy in the top malls has fallen to 6.7%, the lowest level since 2010, implying there is shortage of quality retail space for both domestic and global brands.
“India does not lack retail real estate in terms of total square footage but well -located, professionally managed, institutionally owned Grade A and A+ mall space that can meet large national and international retailers' needs,” said Anuj Kejriwal, CEO of retail as well as Europe, Middle East and Africa for the Anarock Group.
The company has spent the past few years meeting global luxury brands and retailers as it markets the project overseas. "We have not found a single luxury brand that has said it does not want to enter India. The question is whether the ecosystem is ready." Sayal said, “People compare India with China, but it is not the right comparison. As incomes rise and consumer behaviour changes, we will get to that stage. But we have to be ready with the infrastructure.”
The company is also looking beyond luxury shopping to increase the time visitors spend at the destination. The project will include a large indoor entertainment zone of around 50,000-60,000 sq. ft, with the company in discussions with international entertainment operators like Universal Studios.
While he declined to identify potential partners because negotiations are ongoing, he said concepts being explored include globally recognized immersive attractions and branded adventure experiences. Luxury retail alone, he said, is unlikely to define the next generation of shopping destinations.
Aerocity is already surrounded by about 8,000 hotel rooms, with several luxury hotels under development. Sayal expects the district to attract not only affluent residents of Delhi-NCR but also business travellers, international visitors and passengers transiting through Delhi airport.
Multiple Metro lines and the Regional Rapid Transit System will bring customers beyond Delhi. "A lot of affluent consumers from tier-II cities don't have access to global luxury brands where they live. Better connectivity will bring many of them closer to Delhi," he said.
He also expects global luxury brands to increasingly move from multi-brand retailers to standalone flagship stores in India.
"Earlier you would see brands coming through distributors and multi-brand retailers. Increasingly, brands want their own stores, similar to what they have in other Asian markets." Sayal said brands spanning fashion, watches, jewellery, beauty and lifestyle will be part of the list.
The company has yet to begin formal leasing and plans to approach tenants once construction is substantially complete. Sayal expects the mall to open with 60-70% occupancy, with the remaining space being filled as retailers complete store fit-outs.