Hyderabad to witness big mall boom

Hyderabad: With the fourth largest consumer spend in the country, Hyderabad is expected to witness a big retail boom in the coming years. According to Knight Frank India’s report on Hyderabad retail sector, “Modern retail in Hyderabad is expected to grow at a compounded annual growth rate of 23 per cent between 2015 and 2019 from Rs 3,600 crore to Rs 8,600 crore.” The report looked into the emerging trends in multi-channel retailing, shopping centres and new formats.

In terms of total consumer spending by its residents, Hyderabad stands at the fourth place in the country with Rs 1,251 crore after Mumbai, Delhi and Bengaluru. Dr Samantak Das, chief economist and national director of research, Knight Frank India, “Despite having a sizeable customer base with high consumption and retail expenditure, modern retail penetration in Hyderabad stands at a meager nine per cent - the lowest among top seven cities in the country. This reflects a big opportunity for the growth of modern retail in the city.”

According to the report, central zone, which includes Begumpet, Punjagutta and Ameerpet, Abids, has the highest potential for modern retail development. Among the emerging areas in the city, the report said, “Uppal in the East is a location that is likely to experience modern retail growth.” As per Vasudevan Iyer, director, Knight Frank, Hyderabad, “Hyderabad has been witnessing a sizeable customer base and that drives the success of retail developments in Hyderabad. It has emerged as a sought-after retail market in the last couple of years, with a number of national and international giants like IKEA desiring to set up stores in the city. While there is great potential for the overall growth in the brick and mortar retailing methods, proper implementation of state level policies is a must to make retail business conducive.”