Considering the growth potential in the industrial and services sector, the real estate in the State and Hyderabad in particular are projected to see a compounded annual growth rate of 13 per cent over the next few years with a cumulative demand of about 18.5 million square feet, according to a report released on Thursday .

The report “Advantage Andhra Pradesh, Expanding Beyond the Traditional Cities”, by Cushman & Wakefield Global Real Estate Consultancy firm, maintains that the demand for real estate over the next five years will be in line with the growing employment opportunities as Hyderabad is now amongst the most desired destinations for residential and retail developments.

The report prepared by C&W for the State Government was today released by the Andhra Pradesh Chief Minister, Mr.N.Kiran Kumar Reddy.

While Hitec City remains the second largest urban development in the country, locations around Hyderabad, such as Shamshabad where new international airport is located, Uppal and Pocharam are among fast emerging micro markets. Other than Hyderabad, key developments are also taking place in Visakhapatnam, Vijayawada, Warangal, Tirupati and Kakinada. Providing insights into cities like Visakahapatnam, the report mentions that it is the second most attractive destination for future growth.

The report identifies Kakinada, Warangal and Vijayawada as potential growth centres for the economy owning to their unique strengths and the possibility of growth. Going by the demand and potential, Hyderabad is likely to be the second highest growth centre for office demand in the next four years.

The report notes that the efforts initiated by the State Government would help sustain this growth momentum, according to Mr. Naveen Nandwani, Director, C&W.

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