On a shopping spree: Why high-street retail is making a big comeback in India?

While global luxury brands have been cautious, Indian-origin brands have been quicker to capitalize on the high street revival.

India’s high street retail is experiencing a resurgence, with cities like Bengaluru, Mumbai, and Delhi-NCR poised to attract global luxury brands in the next two to three years experts said. After years of lagging behind malls due to infrastructure issues, improvements in parking and walkability are drawing renewed interest from both local and international brands. This shift comes as Indian high streets begin to offer a more competitive retail experience, challenging the dominance of malls, experts noted.

High streets rise again

For years, global luxury brands like Louis Vuitton and Zara shied away from high streets in India, citing poor infrastructure. Brands need parking spaces and pedestrian-friendly streets, which high streets in India lacked, explains Abhishek Sharma, Senior Director of Retail Agency at Knight Frank India. “This is why Zara backed out of opening a store on Bengaluru’s Commercial Street, and why Louis Vuitton closed its Chennai high street location.”

Post-COVID, however, high streets have seen significant redevelopment. Locations like Commercial Street and Church Street in Bengaluru have added essential amenities such as parking and wider walking bays, making them more attractive to retailers. As these spaces improve, they are regaining favour among brands, particularly those that offer luxury products.

"Occupancy cost has traditionally been higher in malls than in high streets. However, the gap has been reduced significantly for both models to come at par led by the changing dynamics of consumer approach," Anuj Kejriwal, CEO & MD of ANAROCK Retail said.

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High streets and malls represent two ends of the retail spectrum, each offering distinct and unique advantages and characteristics. High streets are characterized by a diverse yet limited mix of small to medium-sized independent stores accommodating brands across retail categories.

However, e-commerce and evolving consumer preferences have challenged this dominance. In recent years, the rental yield disparity between high streets and malls has narrowed, Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE said.

Indian homegrown brands lead the way

While global luxury brands have been cautious, Indian-origin brands have been quicker to capitalize on the high street revival. Premium homegrown names like Taneira, Fab India, Abiba, and American Eagle are now exploring these spaces, with several like Tommy Hilfiger and Jack & Jones already setting up shop.

Sharma notes that the number of luxury brands on high streets has surged since the pandemic. “Pre-COVID, if 100 luxury brands opened shops on high streets. Today, that number is closer to 135-140,” he says. Brooks Brothers recently opened a store on Indiranagar’s 100 Feet Road in Bengaluru, marking a growing trend among premium brands.

Currently, Indian brands dominate High Street retail, holding 87% of the market, with international brands comprising just 13%. However, as more global brands recognize the growing appeal of high streets, this balance is expected to shift.

Tier II cities emerge as new hubs

The high street revival isn’t limited to major metros. Tier II cities like Bhubaneswar, Nasik, Mysore, and Rajkot are also emerging as key retail hubs. As urbanization spreads and disposable incomes rise, these cities are attracting new retail developments.

Data from ANAROCK shows that in the past two years, high street rentals have grown by 10-15%, compared to 5.5-6.5% for malls. In these Tier II cities, the demand for high street shopping experiences is growing, spurred by a younger, aspirational demographic.

These cities represent an untapped opportunity for both homegrown and international brands, as consumers in smaller cities seek the personalized shopping experiences that high streets can provide.

Higher returns, better sales

One of the reasons for high streets’ renewed popularity is their ability to offer higher rental yields compared to malls. Industry experts estimate rental yields on high streets at 10-12%, while malls command around 8%.

In Bengaluru, Commercial Street sees rents of Rs 275-325 per sq ft, while Brigade Road rents stand at Rs 300-325 per sq ft. In Delhi, Khan Market commands more than Rs 900-1,000 per sq ft, driven by the presence of premium brands and larger store sizes. Mumbai’s high streets also see strong demand, with Colaba rents at Rs 500-700 per sq ft and Linking Road at Rs 600-800 per sq ft.

While high streets may attract fewer visitors than malls—around 15-40 footfalls per day compared to 100 in malls—the conversion rate is much higher. On average, sales conversions on high streets are 3-4 times higher than in malls, making these spaces highly lucrative for retailers.

"Rental yields for high streets and retail malls in Bengaluru and Mumbai can vary significantly based on several factors, including location, foot traffic, tenant composition, and property age. Historically, retailers have preferred high streets due to their visibility and accessibility, often resulting in higher rental yields. However, e-commerce and evolving consumer preferences have challenged this dominance. In recent years, the rental yield disparity between high streets and malls has narrowed," Magazine said,

Future outlook

As high streets continue to develop, they are poised to become strong contenders for luxury retail in India. The combination of rising rentals, better sales conversions, and improving infrastructure is making high streets increasingly attractive to both local and global brands.

In the next few years, as more cities invest in redeveloping their high streets, these spaces could become the preferred retail destination for both consumers and retailers. The future of Indian retail will likely see a more balanced coexistence of high streets and malls, with high streets playing a pivotal role in the country’s retail resurgence.