Hyderabad, the country’s most liveable metropolitan city as per the The Mercer Quality of Living Rating 2019, is likely to see infrastructure challenge due to skewed development of West Hyderabad.
The political stability instilled after 2014 brought a fresh leash of economic development and investment leading to real estate growth in the city.
While mentioning about the skewed development of the West Hyderabad, Samantak Das, Chief Economist and Executive Director, Research & REIS, JLL and Trivita Roy, Director, Research & REIS, JLL, bring to the fore some of the challenges and the way forward in their Hyderabad update.
Most of the real estate development in the city pertaining to office space has taken place in the western part. The traditional residential locations are concentrated in the eastern and southern regions.
About 86 per cent of the office stock is concentrated in Hitec City and Gachibowli. On the same line, for the last 3-4 years, more than 75 per cent of the new residential project launches have taken place in western part.
The real estate growth is skewed towards one region and this is likely to put substantial pressure on carrying capacity of a few key roads and traffic junctions in Hyderabad. With further growth in these locations, the congestion on these roads and junctions is likely to increase even further.
Promising real estate hub
JLL Research has identified Hyderabad as a promising real estate destination. The office market in the city is witnessing demand at an unprecedented pace, with no signs of slowing. As a result, the net absorption is expected to breach the 12 million sq ft mark by this year-end, touching the levels of Bengaluru. Further, the city also witnessed around 11 million sq ft of new completions during the first nine months of 2019, forming one third of the overall new completions across the top seven cities. The momentum is expected to continue unabated with Hyderabad likely to attain a new high of 14 million sq ft of new supply by this year-end.
This will catapult Hyderabad’s position to the top ahead of Bengaluru. Strong demand from large corporates coupled with an attractive residential market is driving this euphoria in Hyderabad.