Fashion, apparel take 51 percent share of retail leasing in Hyderabad
In 2022, leasing activity in retail sector up by 21% year-on-year to 4.7 million sft
Hyderabad: As brands are stepping up to expand their business, Hyderabad has seen rapid growth across the retail sector. There is an increase in the number of malls, standalones and high streets across the city.
Hyderabad recorded absorption of approximately 0.21 million sft. in investment grade-malls, high streets, and standalones during the second half of 2022, according to a report by CBRE South Asia.
The real estate consulting firm’s latest retail report, ‘India Retail Figures H2 2022’ highlights the growth, trends, and dynamics across the retail sector in the city. Among the key retail categories, leasing was mainly driven by fashion and apparel with a share of 51 per cent in total absorption, followed by food and beverage with 25 per cent and hypermarket with a 10 per cent share.
According to the report, retail leasing activity surged by 5 per cent to 2.43 million sft from July 2022 to December 2022 as against 2.31 million sft. reported in the first half of the year. Overall, in 2022, leasing activity in the retail sector grew by 21 per cent year-on-year to 4.7 million sft.
“The Indian retail sector is recovering, and we anticipate that it will continue to gain momentum through 2023. Even amid the difficult global economic conditions, international brands are expanding not only in tier-I cities but also penetrating tier-II & III cities as they see India as a potential market,” said Anshuman Magazine, Chairman and CEO CBRE.
In overall leasing, fashion and apparel retailers continued to expand their footprint, accounting for a share of more than 42 per cent and the other categories that continued to drive leasing activity included food and beverage with a 12 per cent share, along with hypermarkets with 7 per cent. Shoppers have been increasingly opting for hybrid commerce since the pandemic.
The entertainment category, which was impacted the most during the pandemic, also emerged as one of the top demand drivers with a 6 per cent share in the overall space take-up.
The report elaborates on how shoppers returned to physical retail as cities began reopening after the pandemic. Even though supply addition has decreased by 69 per cent year-on-year during the review period, pent-up supply is expected to become operational in the first half of 2023, and the overall supply for the year is predicted to exceed the pre-pandemic levels.
Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, said, “As the cities started to reopen after the pandemic, many shoppers returned to physical retail and since then have adopted ‘hybrid commerce’. Sales in Jul-Dec ‘22 surpassed the pre-pandemic levels owing to increased consumer confidence leading to a hike in spending.”
Retail – other city highlights:
* Delhi-NCR: International and domestic brands continued to expand
* Bengaluru: Supply picked up pace, leasing driven by newly operational malls
* Mumbai: Demand driven by secondary space take-up
* Chennai: Leasing almost touched pre-Covid levels, led by domestic brands
* Pune: Supply picked up pace, demand led by fashion & apparel brands
* Kolkata: Retail leasing strengthened, led by strong footfalls due to festive season
* Ahmedabad: Leasing led by expansionary demand from fashion & apparel brands
