HYDERABAD: According to the ‘India Market Monitor Q3 2023’ report released by CBRE South Asia Pvt. Ltd on Thursday, retail space absorption in Hyderabad increased by 145% year-on-year (YoY) with space absorption of 0.49 million sq. ft from January to September 2023. During this period, Hyderabad accounted for 10% in leasing across top eight cities, primarily dominated by fashion and apparel brands.
During the July-September 2023 quarter, total leasing in the city stood at 0.26 mn.sq.ft., compared to 0.09 mn.sq.ft. of 2022, witnessing a significant YoY growth of 189%. Capturing a chunk of 35%, Bengaluru emerged as the victor in total leasing, followed by Pune (24%) and Hyderabad (14%). During July-September 2023, the top eight cities also witnessed a 100% YoY growth in mall completions. Pune led the growth in supply addition with a 58% share, followed by Delhi-NCR at 19%.
Anshuman Magazine, chairman and CEO of CBRE, said, “With the surge in newly available spaces and the onset of festive season, we anticipate a continued upswing in space utilisation. The retail sector is on the brink of a remarkable transformation, where retailers are keen on revamping the in-store experiences with cutting-edge technology, personalised services, and space optimisation.”
Ram Chandnani, managing director, advisory and transactions services, at CBRE India, said, “We foresee Tier-II cities gaining momentum as retailers, seize the opportunity to enter these promising markets, capitalising on their potential for growth while managing operational costs. This strategic move allows them to enhance brand presence, foster customer engagement, and offer value through in-person shopping experiences.”