Hyderabad evolves into retail hub

City ranks fourth in mall space nationally and leads in Grade-A retail developments, says Knight Frank

Property Pulse

Hyderabad is steadily strengthening its position as one of India's leading organised retail destinations, driven by rapid urban expansion, rising incomes and sustained growth in the IT sector. According to a report by global real estate consultancy Knight Frank, the city ranks fourth in India in terms of total shopping mall space and leads the country in the share of Grade-A retail developments.

The city currently has around 7.2 million sq. ft. of organised mall space, behind Delhi-NCR (31 million sq. ft.), Mumbai (16 million sq. ft.) and Bengaluru (15 million sq. ft.). However, Hyderabad stands out for the quality of its retail assets, with more than half of its malls classified as Grade A.

The city's retail growth has been supported by the expansion of its western corridor, where employment hubs and premium residential developments continue to drive consumer demand. Locations such as Gachibowli, Financial District, Kondapur, Kokapet, Manikonda and Narsingi have emerged as key catchments for organised retail, supported by a growing base of high-income households.

Hyderabad's retail landscape is also poised for significant expansion. The proposed Lulu Mall at Narsingi, spread across about 4 million sq. ft., is expected to become India's largest shopping mall upon completion. The project is likely to further strengthen the city's position as a major retail and lifestyle destination.

Modern shopping malls have evolved beyond conventional retail spaces to become integrated lifestyle centres offering entertainment, dining and recreation. Multiplexes, gaming zones, international restaurants and family entertainment facilities are increasingly attracting visitors, making malls an important part of Hyderabad's urban ecosystem.

With several large retail projects in the pipeline, Hyderabad's organised mall space is expected to nearly double in the coming years, reinforcing its position among India's fastest-growing retail markets.

Leisure spaces

• Hyderabad ranks 4th in India for mall space.
• Organised retail stock: 7.2 million sq. ft.
• More than half of malls are Grade A.
• Proposed Lulu Mall, Narsingi: 4 million sq. ft.
• Mall space expected to reach nearly 15 million sq. ft.
• IT growth and premium housing continue to drive retail demand.