Hyderabad retail strengthens as new malls and brand entry fuel growth

Rents increased across Prime Suburbs.

A strong development pipeline and the entry of new international and domestic brands are expected to sustain retail leasing momentum in Hyderabad into 2026, according to JLL’s Asia Pacific Retail Market Dynamics report.

In the fourth quarter of 2025, Hyderabad recorded net absorption of 0.55 million square feet, largely driven by leasing activity at the newly completed Lakeshore Gateway Mall in the Prime Suburbs. This pushed the city’s total net absorption for the year to 1.05 million square feet.

Gross leasing volumes also remained strong during the quarter, reaching 1.01 million square feet — a 44.6% increase compared to the previous quarter. For the full year, gross leasing totaled 2.91 million square feet.

The completion of Lakeshore Gateway Mall added approximately 1.1 million square feet of retail space in Q4, bringing total new supply in 2025 to 2.15 million square feet. Whilst the pipeline remains strong, the anticipated influx of new developments is expected to slightly increase vacancy levels in the coming years.

Rental values continued to climb, with overall rents rising 6.1% quarter-on-quarter and 8.3% year-on-year. Growth was particularly pronounced in the Prime Suburbs, where rents increased 6.8% quarter-on-quarter as newly completed Grade A malls commanded premium pricing.

Capital values also posted significant gains both quarterly and annually, again led by performance in the Prime Suburbs.

Meanwhile, yields softened slightly, declining by 10 basis points compared to the previous quarter.