Hyderabad: Leasing pace increased in mall sector

Hyderabad: The retail scenario in Hyderabad witnessed a strong upturn in the last quarter of 2023, according to the latest report by real estate services firm Cushman & Wakefield.

The quarter witnessed leasing activities amounting to nearly 2 lakh sq ft in prime high street locations, primarily the Central Business District (CBD) and areas such as Banjara Hills, Jubilee Hills, Kokapet and Secunderabad.

The key sectors driving this surge were fashion, hypermarkets and food and beverage (F&B), with anchor-format stores opening during the quarter. By 2023, main road retail leasing activities of around 1.8 million sq ft are seen in Kompally, Kokapet, AS Rao Nagar, Nallagandla, Vanasthalipuram, Madinaguda, Kondapur and Manikonda.

According to the report, in the mall sector, Q4 2023 displayed sustained leasing momentum, driven by recently operationalized retail spaces in the Kukatpally and Karmaghat areas.

Throughout the year, Hyderabad witnessed a total supply of 1.5 million sq ft, with around 2 million sq ft of supply expected by 2024, leading to expansion of retail space in Nallagandla, Nanakramguda and Kompally.

Additionally, the report said that main road rentals have increased in places like Ameerpet, Jubilee Hills, Banjara Hills, Kompally, Kothapet and Madhapur, with rentals seeing an average increase of 5-25 per cent in recent quarters.

The report also details key projects under construction and notable leasing transactions in Q4 2023.

Aparna Mall and Multiplex at Nallagandla, spread over 7 lakh sq ft, is expected to be completed in Q1 2024. Similarly, Lakeshore Mall at Kukatpally, which is estimated to be completed by the second quarter of 2025, will have an extensive retail space covering 1,660,000 sq. ft.

Important projects under construction:

Property Location SFT Completion Date

Aparna Mall & Multiplex Nallagandla ₹ 7,00,000 Q1 2024

Lakeshore Mall Kukatpally 16,60,000 Q2 2025