New malls drive retail leasing growth in Hyd
Retail leasing zoomed 137% during January-June 2023 period as high streets, standalone developments in demand
image for illustrative purpose
Hyderabad Investment-grade malls, high streets and standalone developments in Hyderabad led to an increase in retail leasing by 137 per centyear-on-yearin the first half of CY2023 ended on June. During this period, among the industry segments in the city, homeware and department stores drove leasing with a share of about 33 per cent, followed by fashion and apparel at 30 per cent, and food and beverage at 11 per cent.
Real estate consulting firm, CBRE South Asia Private Limited on Thursday announced the findings of its report, ‘India Retail figures H1 2023’. According to the report, total leasing in Hyderabad during first half of the year stood at 0.25 million sq ft compared to 0.10 millionsqft in the corresponding period last year. Brands like Pantaloons, Westside and FTV Cafe led the leasing activity in the city.
Anshuman Magazine, Chairman and CEO - India, CBRE said, “Retailers have expressed positive leasing sentiments, indicating their strong interest in establishing new setups, expanding operations, and upgrading existing stores. The leasing performance displayed positive trends on a half-yearly basis as well, exhibiting a 15 per cent rise in space take-up compared to 2.49 million sq ft of leasing recorded during H2, 2022.”
According to the report, strong flight-to-quality demand will continue prompt retailers to seek high-quality retail spaces in city centres and along prime high streets.
“Going forward, the anticipated growth in mall supply coupled with encouraging consumer spending trends, especially during the festive season, is expected to further augment the sentiment for expansion among both international and domestic retailers who are well positioned in the market,” the CEO said.
During the pandemic,therewas a surge in online shopping.This led stakeholders to move operations closer to the end-user market. India’s transition into an organized retail market will be driven by the continued growth in these cities.Magazinefurther added: “While decentralised properties will continue to attract interest, we expect assets in prime locations to outperform in 2023. Cost-sensitive retailers are likely to seek opportunities to add new stores in secondary locations.”
Successful brand are launching presence in tier II, III and IV markets.Population with increased spending potential, smart city recognition by the government, developing infrastructure,and availability of land are elevating preference for these markets, the report added.
