Office Space in Hyderabad to Bounce Back with Significant Growth
In Hyderabad, real estate development is driven by the growth of core sectors which includes IT, life sciences, infrastructure, BFSI and engineering, and new initiatives to stimulate strong investors and ecosystem.
Experts say the state government's industry-friendly initiatives ensuring easy doing business (EoDB) drawn new investments and thus increase commercial real estate faster. The urban living index will continue to draw citizens, which will allow the housing industry to take advantage of.
Hyderabad's Office Space to Grow Fast
Experts stated that Office space had shown exceptional strength. In the core sector, the technology companies developers work with demonstrated stability. Those with strong market visibility began their office plan, although the new space requirements were redesigned.
Research indicates the recovery in office transactions and new completions in Hyderabad have helped to raise rental prices in the third quarter of 2020. In the third quarter, the city witnessed office operations at 5,00,000 sq ft.
It should also be noted that in India, the first half of 2020 (H1), Hyderabad accounted for nearly 12% of office space transactions. The services market, led by the leading IT industry, continued to drive office space occupancy with a share of 53%.
The H1 for 2020 saw 1.7 million sq. ft of leasing operation. The overall office stock in the city amounted to some 61 million sq. ft by the end of the first half of 2020. The demand for medium-term office space is expected to recover more rapidly.
Several national realty developers extended their footprint by building additional Grade A offices in Hyderabad. Adding to this Wells Fargo leases offices in Hyderabad over 1.3 mn sq. ft. In the first half of 2021, Hyderabad and Bangaluru will recover with the availability of vaccines. For Hyderabad, Fortune 500 companies, including Wells Fargo, have expanded and are now engaged in new recruitment.
The government of Telangana, with its proactive policies, have a lot of confidence. Many new companies are expected to enter Hyderabad, and current companies would extend their base in the city.
By: Shailaja K