Retail leasing activity in Hyderabad was resilient during the first half of 2018, led primarily by the opening of two new malls by L&T Constructions as part of their Transit Oriented Development (TOD). The two developments – L&T Hyderabad Next and L&T Next Galleria – together span about 0.65 million sq. ft. The high street segment, comprising locations such as Banjara Hills, Gachibowli and Kukatpally, also witnessed strong leasing activity. The city witnessed the entry of American fast food retail chain Taco Bell, which opened an outlet in L&T Hyderabad Next mall in Punjagutta.
Retailers across categories continued to lease space in high street locations. Department Store chain, Central opened a store at Gachibowli, while Decathlon launched its fifth outlet in the city at L&T Erramanzil. Apparel retailers such as Westside, The Chennai Silks and Unlimited continued to expand their presence in the city. In the electronics segment, Pai Electronics continued their expansion drive by opening two more outlets in Kondapur and Tirumalagiri.
In the organized retail segment, leasing activity was primarily led by the newly operational malls. Apparel brands such as Shoppers Stop, Max, Pantaloons and Marks & Spencer opened outlets in L&T Hyderabad Next, while multiplex operator PVR took up space in L&T Next Galleria.
Rental values across high streets such as Jubilee Hills Road No. 36, Himayat Nagar witnessed an increase of about 14-16% and 8-10% respectively on a half yearly basis owing to increase in demand from retailers. However, rentals in Banjara Hills road no. 2 remained largely stable. Similarly, rental values in organized retail developments too remained predominantly stable.