Around a fifth of India’s operational shopping centres are fast losing relevance, with empty floors, weak brand mixes and ageing infrastructure turning them into what experts describe as “ghost malls”, according to a new report by Knight Frank India.
The study, Think India, Think Retail 2025—Value Capture: Unlocking Potential, surveyed 365 malls across 32 Indian cities and found that 74 of them — covering nearly 15.5 million sq ft — are struggling to attract consumers and retailers alike.
Boom-era malls now facing decline
The findings appear paradoxical at a time when India is widely seen as a consumption-driven economy, with both domestic and global brands expanding aggressively. However, analysts point to a wave of mall construction between 10 and 15 years ago as a key reason for today’s redundancy.
Many malls built during that period, the report notes, failed to evolve with changing consumer behaviour. Poor design, outdated layouts, shifting catchment demographics and weak property management have rendered several of them obsolete.
“Malls need constant monitoring, upgradation, fit-outs, planning and brand-mix relevancy. If any of these levers are out of place, the downfall of the mall is inevitable,” said Ankita Sood, National Director–Research at Knight Frank India.
Not just a small-city issue
Contrary to popular belief, the problem is not limited to smaller towns. Tier 1 cities alone account for 11.9 million sq ft of this dormant retail space, indicating that some of India’s earliest and most established malls have been unable to keep pace with evolving expectations.
The rise of experience-led retail, destination dining, and entertainment-focused formats has changed what consumers seek from shopping centres, leaving traditional, transaction-driven malls behind.
Structural flaws and ageing infrastructure
One of the major structural issues identified is the practice of “strata selling”, where developers sold individual retail units to different owners. This often resulted in fragmented ownership and poorly curated tenant mixes, as spaces went to the highest bidder rather than being planned holistically.
Ageing infrastructure has further compounded the problem. From parking facilities and washrooms to façades and interiors, periodic upgrades are critical. The exit of even one anchor tenant, such as a multiplex or large-format store, can sharply reduce footfall and trigger a downward spiral.
Revival potential still exists
Despite the challenges, the report identifies 15 malls with a combined area of 4.8 million sq ft that could be revived. If repositioned effectively, these assets could generate up to ₹357 crore in annual rental revenue.
“Malls today have to be treated like hotels,” Sood said, adding that consumers now expect curated experiences, concierge-style services and impeccable maintenance.