Hyderabad- Retail Q1 2019

HYDERABAD RETAIL MARCH 2019 MARKETBEATS 5-10% 3.4msf 1.0 msf QOQ GROWTH, MAIN STREET RENTS MALL SUPPLY U N D E R NEW MALL SUPPLY MADHAPUR,KONDAPUR, JUBILEE HILLS CONSTRUCTION EXPECTED IN 2019 HIGHLIGHTS ECONOMIC INDICATORS 2019 Mall vacancies tightened 2017 2018 Forecast Mall vacancies which spiked during the second half of 2018 have declined to 5% levels again. GDP Growth 6.6% 7.3% 7.1% Tenants were quick to grab quality space options available in operational malls. Fashion & CPI Growth 3.3% 3.9% 4.2% Apparel, F&B were dominant with more than half of the leasing share during the quarter. Brands such as Fila, Kompanero, Da Milano, Rare Rabbit, Tarun Tahiliani etc. have opened stores Consumer spending 6.3% 7.9% 7.4% recently. Sephora, the international multi-brand personal care & beauty retailer has recently Govt. Final 14.2% 3.2% 21.2% launched two stores in prime retail malls. Tight vacancies will continue for another 2-3 quarters Expenditure Growth until new mall supply of about 1.0 msf enters the market at the end of 2019. As such, retailers are Source: Oxford Economics already exploring options in main streets. MALL SUPPLY & VACANCY New supply in underserved locations Retail mall space in Hyderabad is largely concentrated in the Western quadrant and so are the 3,500 20.0 brands that are chasing high-spending customers. Areas in the Central, Eastern and Southern 3,000 15.0 quadrants are grossly underserved in terms of quality retail space. Developers have already 2,500 taken note of the infrastructure developments, improved connectivity and large-scale residential 2,000 10.0 growth in the suburban and peripheral localities and are coming up with new retail malls in areas 1,500 like Uppal, LB Nagar, Karmanghat, Makapet and Musheerabad etc. Five major malls with a 1,000 5.0 supply of nearly 2.0 msf are expected to become operational in the eastern and southern 500 quadrants by end-2020. 0 0.0 A Cushman & Wakefield 2011 2012 2013 2014 2015 2016 2017 2018 Q1 Research Publication 2019 Rental stability in malls and main streets Supply ('000 sf) Vacancy % Rentals have largely remained stable in both main streets and malls during the quarter. Select DATA INTO locations such as Jubilee Hills, Madhapur and Kondapur have seen rentals moving up by 5-10% Source: Oxford Economics ACTION over the last 3-4 months on the back of strong retailer demand and higher leasing enquiries. Rentals are likely to remain stable in the short term, but a gradual rise is expected over the next www.cushmanwakefield.com 12 months. HYDERABAD RETAIL MARKETBEATS MARCH 2019 Rohan Sharma PRIME RETAIL RENTS – INR EURO US$ Q-O-Q Y-O-Y Director MAIN STREETS SF/MTH SF/YR SF/YR CHANGE CHANGE Research Services, India Tel: +91 124 4695555 M.G. Road 120 18 21 0% 0% [email protected] S.P. Road/Begumpet 110 17 19 0% 0% Raj Bhavan Road/Somajiguda 90 14 16 0% 0% Banjara Hills 130 20 23 0% 0% Abids 120 18 21 0% 0% Himayathnagar 165 25 29 0% 0% Punjagutta 180 28 31 0% 0% Ameerpet 125 19 22 0% 0% Jubilee Hills 130 20 23 4% 4% Kukatpally NH.9 140 22 24 0% 0% A.S. Rao Nagar 120 18 21 0% 0% Madhapur 110 17 19 10% 10% INR EURO US$ Q-O-Q Y-O-Y PRIME RETAIL RENTS - MALLS SF/MTH SF/YR SF/YR CHANGE CHANGE NTR Gardens 100 15 17 0% 0% Himayathnagar 150 23 26 0% 0% Banjara Hills 260 40 45 0% 0% Madhapur 235 36 41 0% 0% Panjagutta 140 22 24 0% 0% DATA INTO Somajiguda 120 18 21 0% 0% ACTION Kukatpally 180 28 31 0% 0% Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted US$ = INR 69.17 AND € = INR 77.84 A Cushman & Wakefield Research Publication SIGNIFICANT LEASING TRANSACTIONS Cushman & Wakefield (NYSE: CWK) is a leading global real estate PROPERTY LOCATION TENANT SF services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate Main Street Kompally Westside 20,000 services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across Main Street Kukatpally Swiggy 7,000 core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. SIGNIFICANT PROJECTS UNDER CONSTRUCTION PROPERTY LOCATION SF COMPLETION www.cushmanwakefield.com Atrium Mall Gachibowli 160,000 Q4 2019 Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy..

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