Retail leasing in Hyderabad has crossed pre-pandemic levels as the demand doubled in 2021. In fact, Hyderabad recorded 72 percent quarter-on-quarter growth in retail leasing, with more than 2,40,000 sq ft of space leased in the fourth quarter (Q4) of 2021.
In all, the city recorded more than 50 deals in Q4 2021, surpassing the quarterly average of 31 deals during 2019 (pre-pandemic). In the year 2021, Hyderabad saw a double jump in the gross leasing activity, where 1.4 million sq ft of land was leased out across 200 deals.
According to a report by Cushman & Wakefield, the city had witnessed quite a bit of traction in Q4 that accounted for 30 percent of the overall deals as compared to a quieter previous quarter. Of course, there is pent-up consumer demand, and then there was discretionary spending during the festive season, which raised the confidence of the retailers.
Fashion and apparel saw the highest proportion of leasing in Q4 2021, with a 62 percent share compared to 36 percent in Q3. Leading malls had high footfalls, and store-level sales have also reached pre-pandemic levels. Multi-brand retail stores and affordable lifestyle brands such as Westside, Zudio, Max, Levi’s, and Mughda rented spaces in micro-markets such as AS Rao Nagar, Ameerpet, Punjagutta, Himayatnagar, Begumpet, and Somajiguda. There was a 25 percent increase when compared to the previous year.
While top malls continue to attract retailers in segments such as luxury gifting, premium footwear, fashion, and apparel categories, main streets in areas such as Madhapur, Kukatpally, Banjara Hills, Kondapur, and Himayat Nagar are likely to see a slight increase in leasing in the coming future.