Prestige Estates Projects Ltd, which ranks among India’s top five real estate developers by market value, is looking to sell more entertainment and dining spaces in malls while cutting back on apparel retailers, a top official said.

“Shopping can be done from anywhere once you know the brand, entertainment cannot be bought online,“ Muhammed Ali, chief executive officer-retail of the Singapore government-backed firm said over phone.

The developer, which counts Blackrock Inc and Vanguard Inc as its investors, plans to allocate 40 per cent space in malls to entertainment and restaurants, twice of what its older properties offer. At the same time, retail space will be cut from as much as 85 per cent to 60 per cent, Ali added.

His strategy mirrors the rapid transformation in India’s consumer landscape driven by a combination of rising income levels, aspirations and demographics.

It also comes as e-commerce is challenging traditional retail, and malls are trying to reposition themselves as experience-driven destinations with shopping, leisure and lifestyle thrown in the mix.

India’s top cinema chain PVR Inox Ltd is betting on a slew of big-ticket Bollywood and Hollywood releases to bring back audiences while consultancy firm Mordor Intelligence notes that quick service restaurants are seeing a steady rise in average order value and increasingly establishing themselves in retail spaces to capture a broader customer base.

Prestige plans to grow its presence to 15 malls spanning 10 million square feet in cities such as Bangalore, Mumbai, Hyderabad, and Goa by 2030. It operates four malls at present.

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Prestige is expanding the scope of entertainment to include physical activities that engage people of all ages and help them “burn a few hundred calories.”

Prestige shares have fallen 11 per cent over the last year, nearly twice the decline in the NSE Realty index. The company’s profit for the year ended March 31 was down 62 per cent on year to ₹616 crore, the lowest in five years.

Live Performances

Analysts at JM Financial said in a note on Monday that they expect growth in residential sales to moderate after surging in the last two to three years. That makes it imperative for Prestige and other developers to diversify their revenue stream. 

“These are the things that online cannot compete with us, where senses are involved, where you need to physically be there,” said Ali, referring to entertainment and dining.

The company is also focused on live performances. The new mall structure is expected to generate around ₹1,250 crore in rentals annually by 2030, Ali said. That is a sixfold jump from a little over two billion rupees the company made in rentals in the financial year through March 2025. 

“We are challenging the status quo. These malls are going to be very exciting platforms,” said Ali.

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Published on June 11, 2025