Hyderabad’s retail space absorption has grown at a record rate.
Hyderabad’s retail space absorption increased by 145% year over year (Y-o-Y) to 0.49 million square feet during January to September 2022, up from 0.20 million square feet.
From January to September of 2022, Hyderabad’s retail space absorption increased by 145% year over year (Y-o-Y) to 0.49 million square feet, from 0.20 million square feet. Among the top eight cities, the city accounted for 10% of leasing between January and September of 2023, with fashion and apparel brands holding a dominant share of this market.
The CBRE South Asia Pvt Ltd reported on the characteristics, growth, and trends in real estate in India’s retail industry in its report titled “India Market Monitor Q3 2023.” The research states that overall leasing in the city increased by 189% year over year to 0.26 million square feet in the July–September 2023 quarter from 0.09 million square feet in the same period in 2022.
The percentage of leasing for the fashion and clothing industry was 34% over the nine-month period (January-September 23), followed by home and department stores (17%) and food and beverage (13%).
Pune, Ahmedabad, and Mumbai saw the most home and department store leasing, while Delhi-NCR, Chennai, and Pune dominated the lease activity in the fashion and clothing category. During the period of January to September 23, Bengaluru had the largest lease share, accounting for 30%. Delhi-NCR came in second with 19%, Pune with 12%, and Chennai with 1%.
The overall amount leased during the July–September 23 quarter was 1.84 million square feet. Bengaluru and Pune together accounted for 59% of the retail space leasing market. In the leasing market, Bengaluru emerged as the leader, taking a commanding 35% of the market. Pune came in second with a 24% share, Hyderabad third with a 14% share. During this time, Delhi NCR accounted for 11% of all lease transactions.
“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,” stated Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.
