Mall retail absorption rose 52% q-o-q while high street demand remained robust

• Retail leasing activity surged in Q4 2025, with prominent malls such as One Sobha Mall, Forum Rex Walk, and Mantri Square Mall attracting healthy retailer demand. Notable transactions included brands such as Massimo Dutti, Zudio, Funky Monkey, and Chicco.
• Bengaluru’s high street retail sector maintained strong leasing activity, led by food & beverage, jewellery, and home furnishing brands. Key tenants included Suka, Indriya Jewels, Joyalukkas, Her Story, Nilkamal, and Toit.

No new mall supply added in Q4 2025

• Mall inventory remained steady at 14.5 million sq ft in Q4 2025, with vacancy down by 30 bps q-o-q due to healthy leasing momentum. 
• Brigade Cornerstone Utopia Mall is expected to open in the Suburbs by Q1 2026. By 2028, the submarket expects 2.0-2.5 million sq ft of new mall space, including Phoenix Market City Phase 2, Forum 13 Degree North, and Prestige Park Grove Mall.

Capital values and rents remain growth-oriented

• Mall rents and capital values increased marginally by 1.3% and 0.9% quarter-over-quarter respectively. Bengaluru’s retail rents are expected to grow 2.5-3.0% y-o-y in the near term, amid increased demand and constrained supply.
• Bengaluru retail property prices are projected to increase 4.5-5.0% annually through end-2026, driven by rising investor optimism and healthy retailer demand.

Outlook: Bengaluru’s retail sector is set to grow in 2026, driven by high demand and new malls

• Despite 0.7 million sq ft of expected mall completions by end-2026 in the Suburbs, city-wide mall vacancy should remain within 8.5-9.0% as expanding retailers are expected to absorb most new space.
• Bengaluru’s retail market, driven primarily by fashion, F&B, and entertainment retailers, is expected to strengthen its position as a premier retail destination through the continued influx of international and luxury brands, a trend projected to continue through 2026.