Gross leasing activity recorded across prominent malls and high streets

• Gross leasing activity across malls and high streets was recorded at 0.24 million sq ft, 15.7% lower q-o-q. Prominent high streets across the city dominated leasing activity, accounting for 86.6% of the total during the quarter.
• The Fashion & Apparel category led retailer activity during the quarter with a 61.0% share, with the remaining leasing activity spread across the Jewellery, Footwear, Bags & Accessories and Daily Needs & Grocery categories.

One mall completion during the quarter

• With the completion of one mall, Aparna Mall, and the withdrawal of two non-performing malls during the quarter, the city’s mall stock stands at 10.9 million sq ft.
• With continued leasing at Lakeshore Gateway Mall and the opening of Aparna Mall, overall mall vacancy stood at 20.1% in Q2 2026, down 10 bps q-o-q.

Rental values continue to trend upwards

• Rents rose by 2.0% q-o-q, driven by increases across prominent malls, mostly in the Prime Suburbs submarket. On a y-o-y basis, rents were up 13.7%, with more recent completions and other prominent malls continuing to see strong retailer interest.
• With the completion of high-quality malls and strong investor interest in malls exhibiting strong occupancies, healthy tenant mix and rental growth, yields have compressed by 10 bps q-o-q.

Outlook: Recently completed malls to drive strong leasing momentum in the near term

• A healthy supply pipeline is expected to sustain strong leasing activity, while expansion plans by major retail chains and the launch of new store formats in existing spaces at quality malls are likely to support leasing in the coming months.
• In the Hyderabad retail market, yields are expected to compress further, supported by sustained demand for premium, well-located retail assets.