The festive shopping season during Ramzan in Hyderabad, usually known for packed markets and record sales, is witnessing an unexpected slowdown this year. Traders across key shopping hubs say that reduced spending from Gulf-based families and economic uncertainty linked to the ongoing Middle East tensions have significantly affected business.
Every year, thousands of families in Hyderabad rely on money sent by relatives working in the Gulf countries for Ramzan shopping. However, many traders say that this year remittances have slowed as workers in countries like UAE, Saudi Arabia, Qatar, and Kuwait are worried about job security due to the regional conflict.
Lower Remittances Affect Shopping
Shop owners in popular markets such as Charminar, Pathergatti, Lad Bazaar, Madina Market, Tolichowki, and Mehdipatnam say that customers are buying only essential items and avoiding expensive purchases.
Many families who normally spend heavily on clothing, jewellery, footwear, perfumes, and festive gifts are now cutting down their budgets. Traders say that the slowdown in Gulf remittances is directly affecting purchasing power in the city.
According to business owners, several Gulf-based workers have become cautious about sending large amounts of money home as they fear that the ongoing Iran–Israel–US tensions could impact jobs in the region.
Shop Owners Struggling to Meet Targets
Retailers say that sales during the first half of Ramzan have been below expectations. Many shops that usually rely on the festive season to achieve their annual revenue targets are now struggling.
Traders say that while crowds can still be seen in the markets during the evenings, the actual spending per customer has reduced significantly. Customers are comparing prices more carefully and avoiding luxury purchases.
“People are visiting markets, but they are buying fewer items. Many are worried about the future,” said a trader in the Old City market area.
Real Estate Market Already Weak
Business owners also point out that the slowdown comes at a time when the Hyderabad real estate market has already been facing slower growth in recent years compared to the previous boom period.
Many investors from the Gulf and the United States traditionally invest in property in Hyderabad, especially during festive seasons when they visit the city. However, uncertainty about global economic conditions and geopolitical tensions has made several investors cautious.
District Buyers Driving Current Demand
Traders say that much of the current spending in Hyderabad’s markets is now coming from customers visiting from districts across Telangana. Families from smaller towns travel to Hyderabad during Ramzan to shop for Eid, helping markets maintain some level of activity.
However, retailers say that without strong spending from Gulf families, the overall market momentum remains weak.
Uncertain Outlook for Traders
With Ramzan entering its peak weeks, traders remain hopeful that sales may improve closer to Eid celebrations. However, many shop owners admit that the ongoing geopolitical tensions and economic uncertainty are making this festive season one of the most challenging in recent years.
For now, businesses across Hyderabad’s traditional markets are closely watching global developments, hoping that stability in the Gulf region will restore confidence among overseas workers and bring back the festive spending that the city’s Ramzan markets are famous for.
