Despite the slight betterment in the real estate of Hyderabad, the over mall leasing in the city remained poor in the first quarter of the year according to a report from Cushman and Wakefield. For some reason, the footfalls to malls in areas like Banjara Hills and Himayathnagar decreased and as a result there are no takers for the leases.
The mall vacancy in Hyderabad was at 7.3 per cent. Several new malls offering as much as 1,50,000 square feet mall space delayed their opening due to the poor demand. The existing malls are trying to keep up their occupancy by keeping the mall rentals stable.
Despite the poor response for mall leases, the street leasing is good in Hyderabad. The demand for main street retail in Hyderabad remained healthy from apparels and F&B segments. Main streets of Kukatpally, Jubilee Hills and Chandanagar witnessed new leasing activity during this quarter.
