For years, Indian retail success was measured in square footage—the larger the mall, the greater the prestige. But in Delhi-NCR, the landscape is shifting. Compact neighbourhood malls are emerging in Noida Extension, Dwarka, and Gurugram’s high-density sectors, reshaping urban retail by prioritising convenience and community.
Instead of long drives and day-long mall visits, shoppers now prefer retail within a 10–15-minute reach. Knight Frank highlights that micro-markets are leading this trend. These malls, typically spanning 50,000 to 200,000 sq. ft., centre around a quality supermarket, complemented by select F&B outlets, salons, clinics, play zones, multiplexes, banks, and pharmacies—ensuring consistent footfalls throughout the week.
CBRE reports that retail leasing in India surged nearly 50% in 2023, with a large share driven by such compact formats. Cushman & Wakefield notes a 57% year-on-year jump in retail leasing in Delhi-NCR’s high streets in Q1 2025, with Gurugram leading, followed by Noida and Delhi.
Industry leaders see this as more than retail. Pankaj Jain, Founder and CMD, SPJ Group, explains that neighbourhood malls succeed by blending design, tenant curation, and hyperlocal experiences: “It’s about creating vibrant social hubs that enhance liveability.” Arjun Gehlot, Director, Ambience Malls, adds that tenant mix flexibility makes these malls cultural and social anchors for evolving cities like Gurugram. Ajendra Singh, VP, Sales & Marketing, Spectrum@Metro, highlights the business sense: smaller malls deliver faster leasing cycles, lower capital tie-ups, and steady yields.
Across India—from Bengaluru to Mumbai—this trend is visible, but NCR’s township-led growth makes it the testing ground. While large malls will continue as weekend destinations, neighbourhood centres are fast becoming the everyday backbone of urban retail.
