Record growth in retail space absorption in Hyderabad

Retail space absorption in Hyderabad witnessed growth of 145 per cent year-on-year (Y-o-Y) to 0.49 million sft compared to 0.20 million sft. in January - September 2022

Hyderabad: Retail space absorption in Hyderabad witnessed growth of 145 per cent year-on-year (Y-o-Y) to 0.49 million sft compared to 0.20 million sft. in January – September 2022. The city accounted for a 10 per cent share in leasing across top eight cities during January -September 2023 period, primarily dominated by fashion & apparel brands.

In its report ‘India Market Monitor Q3 2023’, the CBRE South Asia Pvt Ltd highlighted real estate growth, trends, and dynamics across the retail sector in India. According to the report, during the July-September 2023 quarter, total leasing in the city stood at 0.26 million sft., compared to 0.09 million sft. in July-September 2022, witnessing a substantial Y-o-Y growth of 189 per cent.

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During the nine-month period (January-September’23), fashion and apparel sector’s share in leasing stood at 34 per cent, home and department stores at 17 per cent, and food and beverage at 13 per cent.

Delhi-NCR, Chennai and Pune led leasing activity in the fashion and apparel category, while home and department store leasing was highest in Pune, Ahmedabad, and Mumbai. Bengaluru recorded the highest leasing share of 30 per cent during the January-September’23 period, followed by Delhi-NCR at 19 per cent, Pune at 12 per cent and Chennai at 11 per cent.

During the July-September’23 quarter, total leasing stood at 1.84 million sft. The combined share of Bengaluru and Pune in retail space leasing stood at 59 per cent. Bengaluru emerged as the frontrunner in leasing, capturing a significant 35 per cent share, followed by Pune with a 24 per cent share and Hyderabad with a 14 per cent share. Delhi NCR also had a 11 per cent share in total leasing during this period.

Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “The retail sector is on the brink of a remarkable transformation, where retailers are keen on revamping the in-store experiences with cutting-edge technology, personalised services, and space optimisation.”