Hyderabad’s office stock has increased by two folds by reaching 56 million square feet in the last ten years, supported by robust basics of a dynamic government, well-thought-of infrastructure and skill presence, making it one of the rapidest developing office markets in India, reported by global property consultant CBRE.
In its report termed, ‘The Comeback of Hyderabad – India’s Original IT Hub Rises Again’, CBRE said that the city’s office space engrossment has achieved an incomparable high of more than 6.8 million sq. ft. in 2017 and witnessed a 102% increment in demand in 2016.
CBRE’s Magazine Chairman or India and South East Asia, Anshuman, said, “Hyderabad’s buoyant economy and resilient growth have propelled the city to become a leading realty hotspot in India. Being the second largest urban agglomeration, Hyderabad large talent pool are driving the city’s robust infrastructure to become the technology hub of our nation. There has been resurgent investment activity attracting funds from both domestic and multinational corporates putting the city well ahead of the curve among metropolitans, strengthening Hyderabad’s realty market.”
Nevertheless, the city with 56 million sq. ft. of office space still lags behind other primary South Indian markets like Bengaluru and Chennai that have an office stockpile of 143 million sq. ft. and 63 million sq. ft. individually.
On the other hand, the city of Nizams also registered a growth in retail and warehousing.
“The organized retail stock (in Hyderabad) witnessed 11% compound annual growth rate (CAGR) from 2011-2016. Logistics and warehousing demand witnessed 93% y-o-y growth in 2016 driven by e-commerce, fast moving consumer goods (FMCG) and pharmaceutical sectors,” the report said.
Total systematic retail stretch in Hyderabad city was 2.9 million sq. ft., the larger part of which is compacted in Western and Central Hyderabad. High streets will persist to experience stable growth in tenanting because of limited supply, specifically those in well-known areas like Himayat Nagar, Banjara Hills and Jubilee Hills.
Moreover, the report said that Hyderabad endures to be one of the most reasonable home markets for buyers in both premium/luxury segment and also high-end/mid-end segments.
“Hyderabad Metropolitan Region offers the best quality of living among cities in India and is a leader in Human Development Index. The real estate market outlook for Hyderabad looks positive. Residential buyers remain focused on investing in new projects in locations such as Manikonda, Kukatpally, Nanakramguda and Kondapur. Launches in the premium / luxury segment are limited to Central Hyderabad, with fewer small scale launches expected in the coming years,” the CBRE report said.