Experience-led formats drive next phase of organised retail real estate growth

Experience-led formats drive next phase of organised retail growth

• Organised retail real estate in India set to attract $3.5 billion in investments
• Experience-led formats and curated assets drive demand and leasing momentum
• Investors prefer high-quality, scalable retail platforms for stable returns.

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India’s organised retail real estate segment is witnessing a sharp upswing in demand, driven by resilient consumption, rapid urbanisation and a significant shift by brands towards high quality compliant retail formats.

According to a report by ANAROCK Research, the organised retail is expected to attract close to $3.5 billion in investments over the next three years, as institutional investors and developers increase exposure to malls, high streets and mixed-use retail destinations.

India is witnessing a revival in retail activity, driven by robust consumer demand and rising confidence among institutional investors, the report said.

Market observers said that the renewed momentum is being supported by improving urban infrastructure, rising disposable incomes and aggressive expansion by national and international brands, particularly in top metros and fast-growing Tier-2 cities.

Industry experts said organised retail is also benefiting from experience-led formats, with food and beverage anchors, entertainment zones and community spaces emerging as primary footfall drivers.

Harinder Singh Hora, Founder Chairman, Reach Group, said that developers are increasingly aligning retail assets with experience-led and omni-channel strategies, enabling brands to seamlessly integrate physical stores with digital platforms for fulfilment, returns and deeper customer engagement.

Developers eye curated, institutional-grade assets

The demand surge is opening up opportunities for developers to create well-curated, professionally managed retail assets with stable occupancies and long-term revenue visibility.

“As organised retail evolves, success is driven not just by scale but by curated experiences that encourage longer dwell times and repeat visits. Retail today is about curation, not just construction — where design quality, accessibility, compliance, efficient parking and a thoughtfully curated tenant mix come together to create destination-led environments. Developers who deliver immersive, lifestyle-oriented retail spaces with a clear consumer proposition are witnessing faster leasing momentum, stronger brand commitment and sustained long-term growth” Hora added.

Echoing similar views Mitul Jain, Managing Director, SPJ Group said that the evolution of organised retail into a consumption- and experience-led asset class has significantly strengthened its investment appeal.

“Retail projects anchored by F&B, entertainment and lifestyle brands are generating higher dwell times and repeat footfalls, which directly translates into stronger sales performance for tenants and predictable rental yields for owners,” Jain added.

Demand grows for experience-led organised retail

Market observers noted that the shift towards organised retail reflects a broader transformation of retail real estate from a transactional leasing business to a consumption-led, experience-driven investment play.

Industry estimates indicate that while India has more than 600 operational malls, fewer than 100 meet institutional-grade standards, intensifying competition among global funds for high-quality organised retail assets.

This ecosystem makes experience-driven organised retail even more desirable among consumers and investors alike, Bhupindra Singh, COO, RISE Infraventures said adding that experience driven retail are emerging as the next growth driver for retail real estate.

With institutional capital focusing on asset quality, governance and scalability, developers who can deliver institutional-grade retail platforms are expected to benefit the most.

“Experience-driven retail that is integrated with offices, residences and hospitality creates a captive audience and all-day footfalls. These formats are increasingly being favoured by investors looking for long-term, stable income rather than short-term transactional gains,” Singh added.

With consumption growth remaining resilient and brands continuing to expand physical footprints despite digital adoption, industry experts believe organised retail will remain among the most attractive real estate segments over the medium term.

Prashin Jhobalia, Chief Marketing Officer at House of Hiranandani, said that high streets unfold as vibrant, open-air promenade inspired by the charm of European streetscapes.

“At House of Hiranandani, destinations like The Walk at Hiranandani Estate are conceived as lifestyle ecosystems—bringing together curated retail, dining and open public spaces to drive sustained footfalls and repeat consumption. Beyond commerce, these high streets are evolving into cultural and social anchors, hosting flea markets, art exhibitions, music nights, fitness meetups and pet carnivals that deepen community engagement,” Jhobalia said.