Hyderabad will be the city to watch out for over the next few years as the potential for real estate development is huge and largely unrealised.
Real estate consultancy CBRE India’s latest report ‘The Comeback of Hyderabad’ states Hyderabad is regaining prominence as one of the leading destinations for real estate in South India.
The resurgence of investment activity coupled with new Government initiatives has prompted the revival of leasing activity over the last couple of years.
Political stability, the state government’s policies, growing occupier demand, improved infrastructure, quality educational institutions and the availability of a large talent pool have helped bring back attention to the city’s real estate market.
Anshuman Magazine, Chairman & MD, CBRE, South Asia, in a statement said, “With the various investor friendly policies initiated by the State government and the planned infrastructure development, Hyderabad will be the destination of choice for a number of corporates looking to expand or enter the South Indian market. The proposed infrastructure development planned for the city is creating a conducive environment and will spur further investment inflows into the city and the state.”
Approximately 16 million sq. ft. of new office supply is set to enter the market in the next three years with the IT corridor to remain a dominant market. The availability of large land tracts in southern Hyderabad and the proposed IT corridors could result in an increase in demand for housing projects.
When compared to Bengaluru and Chennai, Hyderabad continues to be the most affordable market for residential buyers. While the organised retail space in Hyderabad stood at 2.7 million sq. ft. as of June 2016, this is likely to go up by almost 4 million sq. ft. of additional supply in key markets over the next two years, inducing the entry of global retailers into the city.