Hyderabad Sees a Spurt in Retail Space Absorption
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.