Phoenix Mills Joins Retail Expansion Race with Ambitious Targets

Phoenix Mills is set to significantly expand its retail real estate portfolio from the current 11.5 million sq. ft. to over 14 million sq. ft. by 2027, with a further increase to more than 18 million sq. ft. by 2030. As part of this growth strategy, the company plans to establish new retail spaces in cities including Kolkata, Surat, Coimbatore, Thane, and Chandigarh.

In FY25, the company invested approximately ₹2,600 crore in development and construction activities. Of this, ₹1,600 crore was allocated toward land acquisitions in Coimbatore, Chandigarh, Bengaluru, and Mumbai (FSI), while ₹1,000 crore was directed toward construction, according to Group President Varun Parwal during an earnings call. Looking ahead, Phoenix Mills plans to invest ₹1,200–1,300 crore annually to support its expansion. This includes the planned addition of 450,000 sq. ft. to its flagship property in Lower Parel over the next two years.

The company is also scaling up its commercial office space portfolio, aiming to grow from the current 3 million sq. ft. to approximately 7 million sq. ft. by 2027. In hospitality, Phoenix Mills plans to add 400 hotel keys, increasing its total capacity to 988 keys by 2027.

Phoenix’s expansion comes amid increased activity across the retail real estate sector. Nexus Select Trust, backed by Blackstone, aims to double its retail footprint from 10.4 million sq. ft. to 20 million sq. ft. in the next 3–4 years. Similarly, DLF is set to launch three new malls totaling 1.4 million sq. ft. in Goa, Delhi, and Gurugram in FY26, expanding its total mall area to 4.5 million sq. ft.

News by Rahul Yelligetti.