Hyderabad waking up to retail boom

If there is a retail boom in the south, then it has to be happening only in Hyderabad. The city which has only two retail malls at present will in the in the course of the next 18 months see about eight new malls come up, totalling close to 1.36 million sq ft.

The retail boom may be better appreciated if one were to take into consideration the fact that at present there are only two malls and together the retail space they offer is about 4 lakh sq ft.

Admits, Anuj Puri, managing director of Chesterton Meghraj, "After some of the north Indian cities, Hyderabad is clearly the best place to be in if you are in the retail business. We have seen companies willing to put in big bucks as they realise the potential that the city has."

At an average investment of Rs 1,500 per sqft, more than Rs 200 crore is expected to flow into Hyderabad in the next 18 months."Clearly there are more and more consumers out there who are buying more and this is fuelling the rush to have a presence in the city," Puri points out.

At present Hyderabad has only two malls, MPM Mall at Abids spread over two lakh sq ft. and Prasad Multiplex at NTR Gardens spread over an equal 2 lakh sq ft.

The new malls that are coming up are being promoted by big banner names like the Hyderabad-based GVK Group, which is putting up a 3 lakh sq ft mall in the upmarket Banjara Hills. City-based GS Group is also constructing two malls "� a 2.2 lakh sq ft mall called 'Hyderabad Central' in the heart of the shopping district Punjagutta and a 2.5 lakh sq ft mall called 'GS 24 Carat' in Ameerpet.

Apart from this, Remax Constructions is setting up a 70,000 sqft mall at Abids, Babukhan Properties is setting up a 1 lakh sq ft mall in Somajiguda, ITE India is setting up a 1 lakh sq ft mall in Lower Tank Bund Road, Skill Promoters is setting up a 3 lakh sq ft mall in the upmarket Banjara Hills and another 20,000 sq ft mall is being promoted by the Maheswari Group.

Puri's firm, which carries out feasibility studies for clients before they decide to come in and invest, has seen business bloom in the last year and has now set up a full-fledged office in the city to cater to the demand. "There is already 4 lakh sq ft of space in the city spread over two malls in the city and interestingly there is no space available," Puri says, indicating the demand for good quality retail space.

"No other city in the south or probably in the country is witnessing this kind of a furious ramp up in terms of organised retail space and the potential is kind of humongous," Puri says.

Interestingly, despite the kind of demand for organised retail space commercial rental rates have been kind of consistent and have not gone up. Rates hover between Rs 70 and Rs 80 per sq ft for good commercial space with six months deposit.

"This is another reason why retailers are coming to Hyderabad, the fact that rentals have not shot through the roof," Puri indicates.