Hyderabad records 22% growth in retail leasing at 0.45 million sq ft in Q3: Cushman & Wakefield
Hyderabad, Oct 2 (TNT): Hyderabad recorded retail leasing of 0.45 million square feet (MSF) in the July-September quarter of 2026, registering a 22 per cent quarter-on-quarter and 18.3 per cent year-on-year increase, according to Cushman & Wakefield’s Q3 Retail MarketBeat Report.
The city accounted for 20.3 per cent of retail leasing across India’s top eight markets during the quarter.
High streets dominated Hyderabad’s leasing activity with an 86.2 per cent share, while malls accounted for the remaining 13.8 per cent, the report revealed.
The fashion segment led leasing activity with a 37 per cent share, followed by accessories and lifestyle at 20.5 per cent and furniture and furnishing at 13.3 per cent.
Food and beverage (F&B) accounted for 7.9 per cent, while department stores contributed 4.9 per cent.
Domestic retailers accounted for 88.4 per cent of the total leasing in Hyderabad, while international retailers contributed 11.6 per cent, reflecting continued expansion by home-grown brands, the report stated.
Grade A mall vacancy in Hyderabad stood at 4.15 per cent in Q3 2026, while the city’s Grade A mall stock remained at approximately 5.5 million sq ft.
No new mall completions were recorded for the third consecutive quarter.
The city has a Grade A retail supply pipeline of around 0.95 million sq ft through 2028, with upcoming developments in Karmanghat, Shamshabad and Bandlaguda.
The new supply is expected to expand organised retail infrastructure in these locations, which currently have limited Grade A retail stock, the report said.
Across India’s top eight markets, gross retail leasing reached 2.22 million sq ft during the quarter, taking the year-to-date total to 6.57 million sq ft, a marginal 0.4 per cent increase year-on-year.
High streets accounted for 67.9 per cent of quarterly leasing, while domestic retailers contributed 86.3 per cent of the total.
Gautam Saraf, Executive Managing Director – Mumbai and New Business, Cushman & Wakefield, said retail occupier interest remained steady despite constraints in the availability of quality retail space.
He noted that year-to-date leasing was broadly in line with the previous year, despite the absence of new Grade A mall supply for three consecutive quarters.
He said the upcoming festive season was expected to support retail demand, while the planned addition of 12.7 million sq ft of Grade A mall space across the country through 2028 could provide more opportunities for brands to expand.
Milin Rohinesh, Head of Retail-India, Cushman & Wakefield, said retail demand remained broad-based, with fashion, F&B and accessories and lifestyle together accounting for more than half of quarterly leasing activity.
He added that the market was witnessing continued expansion by domestic brands and sustained interest from international retailers, particularly in the premium and luxury segments.
Quality, location, accessibility and consumer experience were expected to remain key factors shaping the growth of organised retail, he added.
TNT TS
