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Hyderabad realty is looking up with office stock doubling in 10 years to 56 million sq.ft, with 6.8 million sq.ft added in 2017. Consultancy firm CBRE South Asia in its report, ‘The Comeback of Hyderabad – India’s Original IT Hub Rises Again,’ highlights some key trends and general outlook for the sector across the commercial, retail and residential segments.
The city remains one of the most affordable residential markets wherein the office demand witnessed 102 per cent Y-O-Y growth in 2016 and organised retail stock witnessed 11 per cent CAGR growth from 2011-2016. The real estate market outlook for Hyderabad is positive, backed by a stable political environment, growing occupier demand, improving infrastructure and the availability of a large skill-pool, the report observes.
With the advent of technology majors, the city’s commercial office demand is expected to remain strong and will enjoy an upward momentum. Anshuman Magazine, Chairman, India & 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’s large talent pool is 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,” he said. The total organised retail space in Hyderabad city stood at 2.9 million sq. ft., the majority of which is concentrated in Western and Central Hyderabad.
FINDINGS
Hyderabad has transformed into one of the preferred IT destinations for MNCs and R&D centres. The city’s overall commercial stock stood at 56 million sq. ft. as of 2017, which is the least in comparison to the other southern commercial hubs of Bengaluru (143 million sq. ft.) and Chennai (63 million sq. ft.), indicating the city’s strong development potential.
Ample social infrastructure and organised retail has supported Hyderabad’s emergence as an attractive residential destination
The total organised retail space in Hyderabad city stood at 2.9 million sq. ft., the majority of this is concentrated in Western and Central Hyderabad.
Hyderabad is expected to see the completion of around 3.7 million sq.ft. of new supply in the coming years.
Total absorption in the logistics space stood at 1.23 million sq. ft. In 2017. Over the past decade, Hyderabad has emerged as a major hub for the bio-technology and pharmaceutical industries, resulting in increased demand for warehousing space.
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