Hyderabad office stock doubles to 56 mn sq. ft. in last decade: CBRE
According to a report by CBRE South Asia Pvt Ltd., Hyderabad continues to remain one of the most affordable residential markets for buyers in both, premium/luxury segment, as well as high-end/mid-end segments.
The report, titled ‘The Comeback of Hyderabad – India’s Original IT Hub Rises Again’, added that office demand witnessed 108 per cent year-on-year (YoY) growth in 2016 and organised retail stock witnessed 11 per cent CAGR growth from 2011-2016. Retail stock is likely to touch 10 million sq ft by 2018. Logistics and warehousing demand witnessed 93 per cent YoY growth in 2016, driven by e-commerce, FMCG and pharmaceutical sectors. The Hyderabad metropolitan region offers the best quality of living among cities in India and is a leader in the Human Development Index, the report added.
According to the report, the real estate market outlook for Hyderabad looks positive, backed by a stable political environment, growing occupier demand, improving infrastructure and the availability of a large skill pool. With the advent of technology majors, the city’s commercial office demand is expected to remain strong and will enjoy upward momentum with approximately 11 million sq. ft. of fresh supply expected by 2019 Residential buyers remain focused on investing in new projects in locations such as Manikonda, Kukatpally, Nanakramguda, and Kondapur. Launches in the premium / luxury segment are limited to Central Hyderabad, with fewer small scale launches expected in the coming years.
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 large talent pool are 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.”
Total organised retail space in Hyderabad city stood at 2.9 million sq. ft., the majority of which was concentrated in Western and Central Hyderabad. High streets will continue to see sustained growth in rents due to limited supply, particularly those in popular locations such as Himayat Nagar, Banjara Hills, and Jubilee Hills, the report said.
The report added that the logistics sector will be driven by demand from e-commerce, FMCG, electronics manufacturing, pharmaceuticals and agro-based industries. Industrial warehousing is also expected to witness boost with the Telangana State Industrial Project Approval and Self-Certification System (TS-IPASS) Bill which has provided for speedy processing and clearance of various licenses and certificates through a single-window system.