Forum Malls to expand in India with 14 new centres, eyes festive rush

Forum Malls, the retail arm of real estate developer Prestige Group, aims to nearly double its portfolio of shopping centres by opening 14 new malls across India's top cities by 2029 as it bets on sustained demand, a top executive told Reuters.

The firm, which operates 11 malls, including eight with Nexus, is doubling down on metro cities and plans to open the centres across Delhi, Mumbai, Bengaluru, Chennai and Hyderabad, CEO Muhammad Ali said.

Shopping malls in big Indian cities have seen steady demand as urban consumers spend more on experiences and branded retail, even as online commerce booms.

Ali said tier-I markets still offer room for growth, unlike tier-II cities where affordability exists but appetite for premium retail is limited.

"Urban markets are where the money is, where people have both the means and the appetite to spend. In tier-II cities, affordability may exist, but the propensity to spend simply doesn't match metros," he said.

Forum is also gearing up to launch India's first athleisure-focused mall by 2027. Covering 800,000 sq ft, or the size of roughly 10 soccer fields, the complex near Bengaluru's international airport will accommodate global sportswear labels, fitness gear, yoga studios and lifestyle brands.

The CEO did not disclose the investment size for the new projects.

The expansion plan comes as India approaches its key festive season when shoppers splurge on higher-value items and malls pull in crowds with elaborate decor and special events. Forum clocks about 30 per cent-40 per cent of its annual sales during the October-December festive period.

Indians are expected to splurge this year following sweeping tax cuts on a wide range of consumer products. Ali said he expects footfall and revenue to rise about 15 per cent in October, excluding any boost from the tax reforms.

"We treat the festive season with utmost seriousness, investing significant time, effort and money into it. Our planning for the season begins as early as January and we spend at least 30 per cent-40 per cent of the annual marketing budget during the festive season, he said.

Bengaluru, Forum's home turf and its biggest market, includes malls such as Forum South Bengaluru and Forum Rex Walk, coupled with a cluster of Nexus shopping centres.

The city is also a battleground for heavyweights, where rivals such as Phoenix Mills, Orion, and VR Bengaluru add to the jostle for shoppers.