The new year seems to be at a high point on the commercial real estate market of Hyderabad. According to estimates, the city already has transactions of about 8 million square feet (mn sq.ft) which are more likely to turn up in 2021.
Hyderabad's Office Space in 2021
Here, a host of e-commerce, insurance and IT major players have opted to improve existing Hyderabad operations, with office space absorptions exceeding the 10million sq.ft mark. The city’s western corridor running through Madhapur, Gachibowli and Kokapet are some selected locations.
The last year was just a setback in a strong market with a consistent focus. With many big deals coming up steadily on the market, the next 6 to 12 months are expected to rebound in Office Leasing. Currently, approximately 7 to 8 million sq.ft of space is in demand, and it is expected that office demand would improve with positive expectations over the long term. With almost 10 million square feet of new supply and about 8 to 9 million sq.ft of new demand, market conditions will continue to be balanced.
Despite concerns of the Work-From-Home model (WFH) keeping companies from investing in physical spaces, developers are still hopeful of a steady recovery. While 25% of staff might still be WFH, industry experts strongly feel that the need for office space is going up. It is just temporary for the entire team to operate remotely.
There would be a need for wider areas with companies renovating their spaces to provide social distancing. Hyderabad real estate market is expected to cross the 20 million sq.ft mark in the next one and half years.
By: Shailaja K