Leasing momentum soars in Hyderabad’s mall sector

Key segments driving this surge were fashion, hypermarket, and Food & Beverage (F&B), witnessing anchor-format store openings during the quarter.

Hyderabad: The retail landscape in Hyderabad experienced a robust surge in the final quarter of 2023, according to the latest report by Cushman & Wakefield, the real estate services firm.

The quarter saw substantial leasing activities reaching close to 2 lakh sft across prime main street locations, predominantly in the Central Business District (CBD) and areas such as Banjara Hills, Jubilee Hills, Kokapet, and Secunderabad, among others.

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Key segments driving this surge were fashion, hypermarket, and Food & Beverage (F&B), witnessing anchor-format store openings during the quarter. Throughout 2023, approximately 1.8 million sft of main street retail leasing activities were observed across Kompally, Kokapet, AS Rao Nagar, Nallagandla, Vanasthalipuram, Madinaguda, Kondapur, and Manikonda.

According to the report, in the mall sector, Q4 2023 displayed consistent leasing momentum, propelled by recently operational retail spaces in the Kukatpally and Karmanghat areas.

Throughout the year, Hyderabad witnessed a total supply of 1.5 million sft, with an expected upcoming supply of nearly 2 million sft by 2024, expanding retail space in Nallagandla, Nanakramguda, and Kompally.

Moreover, the report stated that main street rentals grew in locations such as Ameerpet, Jubilee Hills, Banjara Hills, Kompally, Kothapet, and Madhapur, witnessing an average growth in rentals ranging from 5-25 per cent over recent quarters.

The report also detailed significant projects under construction and notable leasing transactions in Q4 2023. Two significant projects currently under construction are slated to reshape the city’s retail landscape.

Aparna Mall & Multiplex in Nallagandla, with an expected completion date in Q1 2024, spans an expansive 7 lakh sft. Similarly, the Lakeshore Mall in Kukatpally, estimated to be completed by Q2 2025, will boast an extensive retail space covering 1,660,000 sft.

Significant projects under construction:

Property Location Sft Completion date

Aparna Mall & Multiplex Nallagandla 7,00,000 Q1 2024

Lakeshore Mall Kukatpally 16,60,000 Q2 2025