Why Fashion Brands Are Betting Big On Hyderabad

Hyderabad is no longer just the City of Nawabs and pearls. It’s quickly transforming into India’s hottest fashion hub. 

In the last six months to a year, fashion brands like Snitch, The Indian Garage Co, Rare Rabbit, Big Hello, Bonkers Corner, The Souled Store, Technosport, Allen Solly, Tasva, Jaypore, Azorte and NEWME have opened their stores in Hyderabad. 

What’s pulling these brands to Hyderabad? It’s because the city is growing fast in every way, be it in terms of better governance, strong economy, booming real estate and great infrastructure. 

For instance, according to Hurun India Rich List 2024, Hyderabad now ranks third in India, just behind Mumbai and Delhi, when it comes to billionaire count, with 18 billionaires and a total of 104 ultra-wealthy individuals with a wealth of over Rs. 1,000 crore (US $ 120.5 million). That’s a steep rise from just 50 in 2020.

But it’s not just the ultra-rich. A recent study by Home Credit India shows Hyderabad also leads the country in personal monthly income at Rs. 44,000, higher than Delhi, Mumbai or Bengaluru. The average for metros stands at Rs. 35,000. 

The city offers something rare, a stylish blend of luxury seekers and value-conscious shoppers.

 Hyderabad is also quickly becoming one of India’s top cities for retail and fashion growth. According to Cushman & Wakefield’s latest Retail Market Beat Report, the city saw a major jump in retail leasing in the first quarter of 2025, recording 0.8 million square feet of space. This marks a staggering 106 per cent increase compared to the same time last year, making Hyderabad the top contributor among India’s major cities, with 34 per cent of the total national retail leasing.

 Most of this growth is happening in key shopping and lifestyle areas like HITEC City, Jubilee Hills, Kothapet and Kompally. Interestingly, homegrown Indian brands made up 98 per cent of all leasing activity in the city, with fashion outlets leading the demand.

 Hyderabad’s real estate landscape is also expanding beyond its traditional centres. Peripheral areas are emerging as new growth hubs for various sectors, including office spaces, residential, data centres, industrial and life sciences. This growth is being fuelled by major infrastructure projects such as the Metro Phase II extension, the proposed Regional Ring Road (RRR) and industrial corridors.

Established hotspots in West and Central Hyderabad are still active, but peripheral areas like the North, South, East and West are expected to account for 12-15 per cent of Hyderabad’s Grade A office stock and 5-10 per cent of annual office space demand in the next 3-5 years, according to a Colliers’ report titled ‘Hyderabad: Emerging Real Estate Growth Hotspots’.

One of the main reasons behind this retail boom is the city’s fast growth as a major tech hub, earning the moniker ‘Cyberabad’. Big global tech companies like Microsoft, Google, Amazon, Facebook, Deloitte, Accenture, General Electric, Genpact, Wells Fargo and Oracle have their offices in the city. In Telangana, around 9.46 lakh people work in IT and IT-enabled industries and most of them are based in Hyderabad.

These are high-paying jobs too. According to TeamLease Digital’s latest report ‘Digital Skills and Salary Primer for FY 2025’, product managers in Hyderabad earn around Rs. 21.1 lakh per year, data scientists make about Rs. 16.1 lakh, full stack developers earn Rs. 9.5 lakh and data engineers make around Rs. 11 lakh annually.

Hyderabad is also a great place for budding entrepreneurs. In 2014, there were just around 200 start-ups, but now the number has grown to over 7,500. A recent report by US-based start-up research firm Startup Genome ranked Hyderabad 19th amongst the best cities in Asia for start-ups.

Experts say that with so many young, well-paid professionals living in the city, the appetite for good fashion and branded products is growing fast.

“Hyderabad’s retail landscape is highly promising. With the expansion of commercial hubs like Hitech City, Financial District and Gachibowli, the demand for fashion-forward brands has significantly increased,” said Snitch CMO Chetan Siyal. The omnichannel men’s fashionwear brand, which closed the last fiscal at Rs. 250 crore (US $ 29.6 million) with a net profit of Rs. 4 crore (US $ 482,000), has three stores in Hyderabad and plans to open three more by the end of this year.

He added, “While cities like Mumbai and Bengaluru have fast-paced fashion cultures, Hyderabad’s shoppers display a strong inclination toward curated, statement-driven fashion. There’s a blend of luxury-seeking consumers alongside value-conscious buyers.”

Similarly, Lavish Soni, CBO, House of Rare, a menswear brand under The House of Rare pointed out that Hyderabad has proven to be one of their strongest markets, with the highest revenue per square foot. “The growth potential in Hyderabad is massive. We’ve expanded from one store in 2017 to 12 stores today—a 12x growth in just seven years,” he highlighted.

Like Chetan, Lavish too mentioned that Hyderabad has a preference for quiet luxury and a lavish lifestyle, which aligns well with their premium line. Consumers in the city are more open to new experiences and premium offerings compared to many other southern cities.

For brands like The Souled Store as well, Hyderabad checks all the boxes. “Hyderabad has a thriving start-up ecosystem, a highly skilled workforce and relatively lower cost of operations compared to other metro cities like Mumbai and Bengaluru. The city’s diverse consumer base and favourable government policies make it an attractive destination for businesses,” said Vedang Patel, Co-founder of The Souled Store. The D2C brand, a prominent player in pop-culture merchandise, has two stores in the city. Last year, its revenue grew by 54.5 per cent, reaching about Rs. 360 crore (around US $ 43.2 million) in FY ’24, up from Rs. 233 crore (around US $ 28 million) the previous year.

“The city’s retail sector is experiencing significant growth, with new malls, high-street shopping areas and a thriving e-commerce culture making it a key strategic market for TIGC’s expansion,” noted Anant Tanted, CEO, The Indian Garage Co. (TIGC), a menswear brand with two stores in Hyderabad aiming for Rs. 1,500 crore GMV (US $ 180.7 million) in the next five years. In 2023, Aditya Birla Group’s TMRW invested Rs. 155 crore (US $ 18.07 million) in TIGC. 

Experts mentioned that Hyderabad’s flourishing fashion scene is further supported by some of its top malls, including Inorbit Mall, The Forum Sujana Mall, GVK One Mall, Sarath City Capital Mall and LuLu Mall Hyderabad. As fashion evolves in India, Hyderabad is indeed emerging as retail’s next big destination.