Hyderabad: Retail space absorption in Hyderabad witnessed a record growth of 145% year-on-year (YoY) to 0.49 million square feet in the first nine months of 2023, compared to 0.20 million square feet in the same period in 2022. This is according to a report released by CBRE South Asia Pvt Ltd.
The city accounted for a 10% share in leasing across top eight cities during the January-September 2023 period, primarily dominated by fashion and apparel brands.
The report also highlights that during the July-September 2023 quarter, total leasing in the city stood at 0.26 million square feet, compared to 0.09 million square feet in July-September 2022, witnessing a substantial YoY growth of 189%.
During the nine-month period (January-September’23), fashion and apparel sector’s share in leasing stood at 34%, home and department stores at 17%, and food and beverage at 13%.
The chairman and CEO of CBRE for India, South-East Asia, the Middle East, and Africa, Anshuman Magazine, commented on the report, saying, “Retailers are keen on revamping the in-store experiences with cutting-edge technology, personalised services, and space optimisation. The retail industry is about to undergo a profound shift.”
The strong growth in retail space absorption in Hyderabad can be attributed to a number of factors, including:
- The city’s growing population and rising disposable incomes
- The increasing presence of national and international retailers
- The development of new shopping malls and retail complexes
- The increasing popularity of online shopping, which has led to a demand for omnichannel retail experiences
The report also notes that the retail sector in Hyderabad is expected to continue to grow in the coming years, driven by the factors mentioned above. This growth is likely to be further boosted by the government’s initiatives to promote economic development in the city, such as the Hyderabad Pharma City and the Telangana Aerospace and Defence Park.
