Construction delays hit Hyd retail market

Hyderabad recorded the lowest mall vacancy of 1.1% in the country, while no new mall supply was witnessed in the quarter

The Hyderabad retail market is marred with inordinate construction delays. In spite of enjoying the lowest mall vacancy in all cities, no mall supply has commenced since 2010. Rental values have remained stable but with an upward bias given the fact that any lease worthy place will command a premium should such a space is freed up, according to Jaideep Wahi, director of retail agency, Cushman & Wakefield India (CWI).

In the latest report released by CWI, Hyderabad recorded the lowest mall vacancy of 1.1 per cent in the country, while no new mall supply was witnessed in the quarter.

 

Owing to moderate demand and lack of lease renewals, CWI stated, the rental values in malls continue to be stable. While most retailers have put their expansion plans on hold till next year and have adopted a wait and watch policy, just a few transactions in the footwear and apparel segments have occurred in Banjara Hills and Madhapur micro markets; thus lowering the mall vacancy level by 0.7 per cent this quarter.

Wahi said addition of supply in the first quarter of 2013 in the Kukatpally area would bring some mall space into the city but the mall rental values were anticipated to be static. Moderate demand conditions would prevail in the short term, thus sustaining the rental values in high streets.