Hyderabad: Hyderabad is seeing robust retail growth led by high street shopping, aggressive expansions and continued momentum in 2022. There was no noticeable impact due to Omicron/third wave and momentum continued without slack and retailers are expanding aggressively in all locations. Overall retail demand this year could reach 1.7 to 2 million square feet.
The city recorded a staggering 72% quarter-on-quarter growth in retail lettings with over 2.4 lakh square feet of leased space in the fourth quarter (October-December) 2021. Hyderabad has registered more than 50 transactions in the fourth quarter of 2021 alone, exceeding the quarterly average of 31 transactions in 2019 (pre-pandemic).
Veera Babu, MD, Hyderabad & East India, Cushman & Wakefield, told Telangana Today in an exclusive interview: “After hitting a reset button in 2020, the retail market in Hyderabad rebounded strongly in 2021 with demand exceeding pre-pandemic levels. .”
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“For all of 2021, the city saw its gross rental activity double to nearly 1.4 million square feet of space across 200 transactions. High streets accounted for more than 90% of this rental activity. Continuing this growth momentum, retail demand could touch 2 million square feet in 2022,” he added.
Expansions across all retail categories, brands and space requirements that were suspended or postponed during Covid-19 have returned to market over the past 6-9 months. He added that several top brands in categories such as fast fashion, high-end ethnic apparel, high-end fashion, luxury brands, catering, consumer electronics, etc. are looking for space options in major retail pools.
Rental inquiries have more than doubled in the past 3-6 months. Retail conglomerates such as Reliance, Tata Group, ABFRL (Aditya Birla Fashion and Retail Limited), Landmark group and K Raheja retail have aggressive expansion plans for several brands. Collectively, these retail giants have active space needs for more than 20 brands in various locations across the city.
Occupancy levels have reached 95% in all major retail corridors, amid higher demand and tight vacancy over the past 3-6 months, he said. note.
Main Business Makers
Over the past 3-6 months, brands such as Westside, Lalitha Jewelery, Mugdha, Zudio, Max, Croma and GRT have secured deals ranging from 10,000-20,000 square feet across the city in locations such as Malkajgiri, Gachibowli, Dilsukhnagar, Begumpet, Madinaguda, Himayat Nagar, Pragathi Nagar, AS Rao Nagar, Ranigunj and Kompally.
Smaller and quick service format, easy pick up, neighborhood stores and smaller format city warehouses are growing in Hyderabad at a rapid pace. Modernized, quick-service meat suppliers such as Fipola, Tender Cuts and Licious have grown. DMart Ready has opened multiple pick-up locations over the past 6-12 months.
Hyperlocal delivery platforms such as Zepto, Blinkit, Instamart, Ola Dash, Dunzo, etc. are opening neighborhood, downtown and smaller-format warehouses/pick-up points for faster deliveries.
Veera Babu added, “Upcoming mall supply (approximately 3 million square feet over the next two years) will have limited/no impact on high street retail demand. Considering the positioning of upcoming malls, increased main street retail penetration in underserved emerging communities, cost arbitrage, brand visibility, positioning and awareness of customers etc., high street retail will continue to perform well over the next 12-24 months.
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