Hyderabad’s office stock has doubled to 56 million square feet in the past decade backed by strong fundamentals of a proactive government, well planned infrastructure, and talent availability, making it one of the fastest growing office markets in the country, says global property consultant CBRE.
In its report titled ‘The Comeback of Hyderabad – India’s Original IT Hub Rises Again’, CBRE said the city’s office space absorption reached an all-time high of more than 6.8 million sft in 2017 and saw a 102% uptick in demand in 2016.
Anshuman Magazine, chairman, India and South East Asia, CBRE, 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.”
However, the city with 56 milion sft of office space still falls behind other major Southern markets like Bengaluru and Chennai who have an office stock of 143 million sft and 63 million sft respectively.
Meanwhile, the city of Nizams also posted growth in retail and warehousing.
“The organised 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 organised retail space in Hyderabad city stood at 2.9 million sft, majority of which is concentrated in Western and Central Hyderabad. High streets will continue to see sustained growth in rents due to limited supply, particularly those in popular locations such as Himayat Nagar, Banjara Hills, and Jubilee Hills.
Further, the report added that Hyderabad continues to remain one of the most affordable residential markets for buyers in both premium/luxury segment as well as 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.
