Hyderabad sees rise in retail leasing in H1
Retail leasing in Hyderabad’s malls strengthened in the first half of this year, led by domestic brands.
The city recorded absorption of about 2.4 lakh sft in investment-grade malls and high streets, said real estate consulting firm CBRE South Asia in its ‘CBRE India Retail Figures H1 2022’.
According to the report, the retail space supply in the city was at 3.7 lakh sft during the first six months. With improving sentiments towards offline stores, space take-up increased across malls on a half-yearly basis.
Leasing was driven by fashion and apparel brands with a 35 per cent share in total absorption, followed by entertainment (34 per cent) and consumer electronics (10 per cent).
The key transactions that happened during January-June this year include INOX (50,000 sft in Necklace Pride Mall), Moviemax (25,000 sft in Eastern Hyderabad) and Decathlon (20,000 sft in Necklace Pride Mall). Retail players from fashion and apparel and food and beverage categories have also set up their new stores in Kukatpally and Madhapur locations in western Hyderabad.
The report said the retail sector leasing in India increased by about 166 per cent Y-o-Y crossing 1.5 million sft. As of June 2022, the total investment grade mall stock crossed over 77 million sft.
Hyderabad, Delhi-NCR and Pune, and Bengaluru accounted for more than 70 per cent of the overall retail space take-up. Pent-up supply is likely to enter the market during the second half of the year and leasing is expected to pick up.
Rents increased by about 5-12 per cent across select locations in Delhi-NCR, Bengaluru, Hyderabad, and Pune, and about 1-3 per cent in Mumbai.
“Retailers have regained confidence and are set for expansion mode. Domestic brands will remain proactive in relocations/expansions, and a strong appetite from international retailers will continue. We foresee retail leasing to touch 6-6.5 million sft in 2022, twice the 2021 quantum. We expect many international brands to launch stores in tier II and III markets,” said Anshuman Magazine, Chairman, CBRE.
“Hyderabad, Delhi-NCR, and Bengaluru are expected to dominate the retail supply addition in the second half of the year. Fashion and apparel retailers will continue to expand their physical sales networks and pay particular attention to enhancing flagship stores,” said Ram Chandnani, Managing Director, Advisory and Transactions Services, CBRE India.
Space take-up
Delhi-NCR
Key transactions include 47,000 sft by Hippo Stores in the Garden Galleria Mall in Noida was one of the prominent transactions
Bengaluru
About 50,000 sft taken by PVR in the Salapuria Divinity Mall in South Bengaluru
Mumbai
Ikea took 70,000 sft in the R City Mall in Eastern suburbs
Chennai
More Supermarket took about 20,000 sft in the OMR Zone1
Pune
About 7,500 sft was taken by The Collective in Phoenix Market City
Kolkata
Decathlon store took up 18,000 sft in Austin Tower
Ahmedabad
RealMe leased 13,000 sft Shyamal Iconic in Prahladnagar
