Hy­der­abad Sees a Spurt in Re­tail Space Ab­sorp­tion

The Economic Times - - Companies: Pursuit Of Profit - Ashish.Kul­shrestha@ times­group.com

Hy­der­abad: Re­tail space ab­sorp­tion in Hy­der­abad has picked up pace af­ter re­main­ing sub­dued for years due to re­gional ag­i­ta­tions and po­lit­i­cal un­cer­tainty.

Ac­cord­ing to prop­erty con­sul­tants, more than half-a-dozen large re­tail­ers, in­clud­ing global brands H&M, For­ever21 and GAP, and lo­cal play­ers Reliance, Shop­pers Stop and Cen­tral, re­cently agreed to ab­sorb nearly 2.6 mil­lion square feet (sq ft) of re­tail space, giv­ing mo­men­tum to a process started by global giants like Ap­ple, Ama­zon and Uber over the last two years.

Prop­erty con­sul­tants at­tribute the spurt in com­mer­cial real es­tate ac­tiv­ity to im­proved of­fice mar­ket ab­sorp­tion — while MNCs like Ap­ple, Ama­zon and Uber en­tered the city for the first time, ex­ist­ing play­ers like No­var­tis, Deloitte and Ac­cen­ture ex­panded op­er­a­tions.

Cush­man and Wake­field is of the view that Hy­der­abad, which is among the least pen­e­trated mar­kets in In­dia, will wit­ness higher ad­di­tion of re­tail space in 2017 and 2018, com­pared with Mum­bai and Chen­nai, in the form of large malls.

“Sta­ble po­lit­i­cal en­vi­ron­ment post Te­lan­gana’s for­ma­tion cou­pled with the state gov­ern­ment’s ef­forts to strengthen the city’s brand as an in­vest­ment des­ti­na­tion have helped the city’s of­fice and re­tail real es­tate seg­ments, said Veer­ababu, Cush­man & Wake­field’s man­ag­ing di­rec­tor for Hy­der­abad.

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