According to the latest reports, the retail sector in Hyderabad sees robust growth led by high streets, aggressive expansions, and continued momentum in 2022.
There has been no discernible impact due to Omicron / third wave, and the momentum has continued unhindered, with retailers aggressively expanding across all locations. This year’s total retail demand could reach 1.7-2 million square feet.
In Q4 (October-December) 2021, the city saw a staggering 72% quarter-on-quarter growth in retail leasing, with more than 2.4 lakh sq ft of space leased. In Q4 2021 alone, Hyderabad saw over 50 deals, exceeding the quarterly average of 31 deals in 2019. (pre-pandemic).
“After hitting a reset button in 2020, the retail market in Hyderabad has swung back greatly in 2021, with demand exceeding pre-pandemic levels,” Veera Babu, MD, Hyderabad & East India, Cushman & Wakefield said to Telangana Today.
He said that for the full year 2021, the city saw a 2X jump in gross leasing activity with nearly 1.4 million sq ft of space across 200 deals. High streets have accounted for over 90 per cent of this leasing activity. Resuming this growth momentum, retail demand could hit 2 million sq ft in 2022.
Space requirement
Expansions throughout all retail categories, brands, and space requirements that were paused or postponed during Covid-19 have returned to the market in the last 6-9 months.
Several major brands in categories such as fast fashion, premium ethnic wear, high-end fashion, luxury brands, F&B, consumer electronics, and so on are looking for space in major retail catchments, he added.
ALSO READ: RBI projects India’s FY23 retail inflation at 4.5%
Leasing inquiries have more than doubled in the last three to six months. Reliance, Tata Group, ABFRL (Aditya Birla Fashion and Retail Limited), Landmark Group, and K Raheja Retail have aggressive expansion plans for many brands. These retail goliaths have active space requirements for more than 20 brands spread across the city.
He mentioned that occupancy levels have reached 95% across all major retail corridors, despite higher demand and tight vacancies in the last 3-6 months.
Notable dealmakers
Within the last 3-6 months, brands like Westside, Lalitha Jewellery, Mugdha, Zudio, Max, Croma, and GRT have signed deals ranging from 10,000 to 20,000 square feet in areas like Malkajgiri, Gachibowli, Dilsukhnagar, Madinaguda, Begumpet, Himayat Nagar, Pragathi Nagar, AS Rao Nagar, Kompally. and Ranigunj.
Smaller, quick-service format, easy pick-up, neighbourhood stores, and smaller format in-city warehouses are rapidly expanding in Hyderabad. Modernized, quick-service meat providers like Fipola, Tender Cuts, and Licious have grown. Over the last 6-12 months, DMart Ready has opened several pickup locations.
ALSO READ: Retail, Hospitality Sectors Saw Significant Hiring in Dec: Report
For faster deliveries, hyperlocal delivery platforms such as Zepto, Blinkit, Instamart, Ola Dash, Dunzo, and others are opening neighbourhood, inner-city, smaller format warehouses/pick-up points.
Veera Babu stated that the upcoming mall supply (about 3 million sq ft over the next two years) will have limited / no impact on high-street retail demand. Given the positioning of upcoming malls, higher penetration of main street retail in underserved, emerging localities, cost arbitrage, brand’s visibility, positioning, customer awareness, etc., high street retail will continue to function well over the following 12-24 months.
(This story has been sourced from a third-party syndicated feed, agencies. Raavi Media accepts no responsibility or liability for the dependability, trustworthiness, reliability, and data of the text. Raavi Media management/ythisnews.com reserves the sole right to alter, delete or remove (without notice) the content at its absolute discretion for any reason whatsoever.)
