Hyderabad expected to get 6 million sq ft of shopping mall space in 3 years: Report
As much as 6 million sq ft of shopping mall space is expected to be created in Hyderabad in the next three years, leading to 25 per cent increase in restaurant space inside malls, according to a report by Jones Lang LaSalle (JLL). Telangana Real Estate Developers Association (TREDA) and JLL on Tuesday announced the launch of research report on Telangana Real Estate “The new face of India’s growth Story”.
“Increase in the number of shopping malls and restaurants is also bringing in opportunities for real estate development and 6 million sq ft of mall space is expected in next three years. It will also lead to 25 per cent increase in restaurant space inside malls,” the report said.
Commercial office space rents edged up significantly by 23 per cent in the same period. “Office space absorption set new records and was at 6.5 million sq ft in 2016. The vacancy rate dipped to as low as 5-7 per cent in key IT hubs,” it said.
Superior quality IT parks were 95-100 per cent occupied. Supply of office space also improved significantly in the same period. There was 15.06 million sq ft of office space built and 23 million sq ft launched from 1H14 to 1H17, the report said.
P Ravinder Rao, President of TREDA, said with the measures the government is taking, in the coming years, Rs 22,784 crores will be spent on infrastructure development to foster economic growth and it will bring positivity to the real estate market in the state, be it in residential or commercial segments.
Growth of the residential space has also been phenomenal and it saw 30 per cent year over year (YOY) increase in launches of residential units. Capital values of residential properties increased by 8-10 per cent y-o- y in the last three years with revived demand and Hyderabad saw a 6-10 per cent increase in residential sales, the report said.