Predicting a big upside for retail in Hyderabad, consultancy firm Knight Frank said Hyderabad has become the fourth largest market for retail among the major cities in India.

In its report 'Hyderabad Retail: Unlocking the Potential', the consultancy highlights the emerging trends in multi-channel retailing, shopping centres and new formats.

As part of the city-level analysis, the report states that the city’s annual consumption is the fourth largest after the MMR, NCR and Bengaluru. It is ahead of Pune and Chennai in terms of retail expenditure.

The report maintains that despite having a sizeable customer base with high consumption and retail expenditure, modern retail penetration in Hyderabad is a meagre 9 per cent, the lowest among the top seven cities in the country. This reflects a big opportunity for the growth of modern retail in the city.

Samantak Das, Chief Economist &National Director of Research, Knight Frank India said, “Hyderabad at 9 per cent has the least penetration of modern retail compared to the top seven cities in India. This in itself is a big opportunity for retailers and real estate developers and we estimate that modern retail in the city is expected to grow at a CAGR of 23 per cent between 2015 and 2019.”

Hyderabad has emerged as a sought-after retail market in the last couple of years, with a number of national and international giants such as IKEA planning to set up stores in the city.