Prominent and newly completed malls drive Q3 2025 net absorption

• In Q3 2025, Hyderabad experienced net absorption of 165,718 sq ft. The gross leasing across both malls and main streets in the quarter was a robust 701,358 sq ft.
• During the quarter, mall leasing activity was seen in Sarath City Capital, Nexus Mall, Lulu Mall, L&T Next and the newly completed Tattva and SMR Vinay Metro Malls. Leasing activity was led by Fashion & Apparel (27%), Daily Needs & Grocery (21%) and F&B (15%).

Two malls with 0.42 million sq ft entered the market in Q3 2025

• With the removal of three non-performing malls, the city’s retail stock now stands at 10.26 million sq ft. Also in the quarter, two new malls opened in the Prime Suburbs: Tattva Mall by Namishree and SMR Vinay Metro Mall.
• In the five-year period (2025-29), a robust mall supply of around 8.5-9.0 million sq ft is projected to be completed across the city.

Overall rents up 3.5% q-o-q and higher y-o-y by 6.2%

• The removal of three non-performing malls and the addition of two new premium malls—Tattva Mall by Namishree and SMR Vinay Icon Mall—pushed the city’s average mall rent up from INR 172 to INR 178 per sq ft, per month in Q3, representing a 3.5% increase q-o-q.
• Institutional investors are seeking retail assets that offer attractive returns that can augment their investment portfolio.

Outlook: Robust leasing activity is expected to continue

• Leasing demand in the city is anticipated to remain strong, with national retail chains driving expansion plans and introducing new formats.
• The leasing market is also set to get a boost as a result of the influx of quality supply in the coming five years.