The boom in residential property development has created a symbiotic relationship between retail and real estate, contributing significantly to the expansion of organized retail and transforming North India into one of the country’s most dynamic retail hubs
New Delhi: North India has always been the land of enterprising people who have created some very successful businesses like Modicare, Liberty, FabIndia, V-Mart Retail, Biba, Mohanlal Sons, and Haldiram’s, among others.
The country’s capital, Delhi, which houses India Gate, has been the chosen gateway to the Indian market for many international brands like Louis Vuitton (LV), Starbucks, Zara, H&M, Victoria’s Secret, Uniqlo, The Body Shop, more recently, Footlocker and Armani Beauty.
Evolution of Retail
Retail in North India has experienced a remarkable transformation over the past few decades, driven by a combination of factors, including economic growth, increased urbanization, demographic shifts, and a growing middle class with rising disposable incomes.
The retail landscape in this region has evolved from traditional markets and small retail shops to sprawling shopping malls, large-format stores, and sophisticated e-commerce platforms. A key catalyst in this transformation has been the rapid growth of residential real estate. The boom in residential property development has created a symbiotic relationship between retail and real estate, contributing significantly to the expansion of organized retail and transforming North India into one of the country’s most dynamic retail hubs.
Before the 1990s, retail in North India was predominantly unorganized. Shopping was largely confined to traditional markets, known for their vibrant street-side vendors, local shops, and bazaars. In cities like Delhi, Amritsar, Lucknow, Chandigarh, and Jaipur, retail experiences were often fragmented, and shopping was more of a local affair. However, with India’s economic liberalization in the early 1990s, there was a major shift in the retail industry.
The opening up of India’s market to foreign direct investment (FDI) and the growth of multinational corporations set the stage for organized retail to emerge. Initially, modern retail formats—such as supermarkets, branded stores, and departmental stores—began to make their way into urban centres, mostly in metropolitan cities like Delhi and Chandigarh. These new retail models brought with them convenience, variety, and a novel shopping experience that resonated with the growing middle-class population.
The late 1990s and early 2000s saw the entry of major retail chains and the advent of the first generation of shopping malls in Delhi-NCR (National Capital Region), such as the Ansal Plaza and Select Citywalk. These developments marked a turning point in the region’s retail evolution, offering an alternative to traditional shopping markets and catering to the needs of a new, more affluent urban consumer base.
The Rise of Malls in the Region
The emergence of shopping malls in North India is a crucial chapter in the story of the region’s retail evolution. Initially, large-format shopping malls were limited to Delhi and its satellite towns, but over time, other cities in North India began to follow suit. Malls quickly became the go-to places for shopping, entertainment, and dining, particularly among the middle-class and youth demographic.
By the mid-2000s, shopping malls began to proliferate across North India, with Delhi-NCR leading the charge. Malls like the DLF Mall of India, Ambience Mall, Sahara Mall in Gurugram, Select Citywalk, and DLF Promenade in Delhi became symbols of modern retailing. Equipped with international and national brands, food zones, and entertainment spaces, these malls offered a shopping experience like never before, changing the concept of an outing. The concept of a “destination mall” became mainstream, where customers could shop, dine, socialize, and even work, all under one roof.
Delhi-NCR, being the political and economic centre of India, was always at the forefront of retail development. However, other cities in North India, like Chandigarh, Jaipur, Lucknow, and Amritsar, also began to see significant retail growth, with the rise of new shopping centres catering to the aspirations of the expanding middle class.
For example, the Elante Mall in Chandigarh, which opened in 2013, became one of the largest malls in the region and a key player in Chandigarh’s retail sector. Similarly, Jaipur’s World Trade Park, with its mix of premium retail outlets and entertainment facilities, captured the attention of both locals and tourists. These malls became part of the larger trend in India where urban centers began to embrace modern retail formats, creating new retail destinations in previously underserved cities.
The growth of the retail sector was not just driven by consumer demand but also by changing lifestyles. As more people sought convenience, variety, and quality in their shopping experiences, the appeal of malls grew. Shopping centres in North India began to feature global brands, luxury outlets, multiplexes, and international dining chains, all of which appealed to an increasingly affluent, aspirational, and brand-conscious urban population.
Over the years, the malls evolved with consumers. Malls today are not just shopping destinations; they have evolved into experiential spaces that offer a wide range of services, entertainment, and lifestyle options. While shopping remains central, modern malls are also transforming into community hubs and lifestyle destinations that attract a diverse range of people.
For instance, DLF Mall of India in Noida, one of the largest malls in the country, is a prime example of how shopping centres are evolving. Apart from an extensive mix of global and Indian brands, the mall has incorporated entertainment options, including an indoor amusement park, bowling alleys, a VR zone, and a variety of F&B (food and beverage) outlets. This shift toward experience-driven retail is further underscored by the growing popularity of “pop-up stores,” events, and live performances in these spaces.
Malls like Lucknow’s Phoenix Palassio and Amritsar’s Mall of Amritsar are diversifying their offerings by integrating entertainment, family activities, and even educational centres. Such developments indicate that the traditional retail model is being transformed to cater to the holistic needs of modern consumers.
Key Driver of Retail Boom
One of the primary drivers behind the growth of retail in North India has been the rapid boom in residential property development. In cities like Delhi, Gurugram, Noida, Jaipur, Chandigarh, and Lucknow, the rapid expansion of residential real estate has created a significant increase in the consumer base, which in turn has spurred retail growth. As more people move into newly developed residential areas, the demand for retail spaces increases, with developers integrating retail centres within or adjacent to residential developments.
Urbanization is a big trend that’s driving retail development. This trend has led to residential property prices in areas like Dwarka Expressway and Noida Extension to surge by more than 145% over the last five years. People migrating in increasing numbers to North Indian urban centres from rural areas in search of better opportunities are fueling the real estate boom and the extension of boundaries.
Take Gurugram for example. Once a small satellite town of Delhi, Gurugram has transformed into a bustling metropolis with some of the highest real estate prices in India. Over the past two decades, the city has seen the development of large-scale residential projects such as DLF New Town Heights, Suncity, and Ireo Grand Arch. These residential developments have not only created a large, affluent consumer base but also led to the rise of shopping malls and retail outlets within the city. Malls like Ambience Mall have become key retail destinations for the city’s growing middle class.
Similarly, Noida, another key part of the Delhi-NCR region, has seen rapid residential expansion with projects like Jaypee Greens, Supertech Eco Village, and ATS Greens, which have contributed to the increasing demand for retail spaces. This has led to the rise of malls, which cater to the daily needs and luxury demands of the population.
Mixed-Use Developments: The New Norm
A key trend emerging in North India is the integration of retail spaces within mixed-use developments. These developments combine residential, commercial, and retail components, creating self-sustaining communities where residents have easy access to retail services without having to travel long distances. This trend is particularly visible in areas such as Indirapuram in Ghaziabad, which has seen significant residential development alongside retail developments like the Shipra Mall and Angel Town Center.
Located in Sector 70, Gurugram, 3 Roads Mall by Reach Group is also a mixed-use development that combines retail, office, and leisure spaces to meet the diverse needs of the local community. Moreover, cities like Lucknow, Jaipur, and Chandigarh are also witnessing the emergence of mixed-use developments, where residential areas are integrated with shopping malls, office spaces, and recreational facilities. These mixed-use complexes provide the convenience of having essential services and retail outlets close to home, thus supporting the growth of both retail and residential real estate.
The Retail Revolution Continues
As North India continues to urbanize and experience increased disposable incomes, its retail sector is poised for further growth. The trend toward mixed-use developments, experience-driven retail, and the integration of e-commerce with physical retail spaces will likely dominate the retail landscape in the coming years. With emerging hotspots like Lucknow, Jaipur, and Amritsar becoming new centres of retail development, North India will remain a critical driver of India’s retail revolution.
