Hyderabad has done everything right to fuel growth
Realty+ talks to Shivam Sinha, Co-Founder and CEO of Indiassetz about the reasons behind Hyderabad’s success of attracting higher commercial investments than Bangalore.
Is Hyderabad a better option than Bangalore in office space leasing?
It wouldn’t be fair to compare ANY two cities given that every city brings with it, its own unique environment to offer in terms of socio-economic construct, cultural landscape and political Will. Alongside, a lot depends on what is the lessee looking for while selecting the city or space for lease- the duration, growth projections, kind of business and Off course the talent market etc… A hundred factors go in while deciding on an opportune market. As for the two cities, I see both having an equal potential with their own unique canvas with reference to the above factors, all encompassing.
Are higher occupancy costs in Bangalore driving businesses away?
Given that the city of Bangalore has continued to expand through its boundary and has shown tremendous growth over the last 2 decades in not just IT sector but across Pharmaceutical, Contact Centers and FMCG industry too, I am not sure how true it is to say that the businesses are being driven away. You will be surprised to know that not only traditional industries but Bangalore has also been a place of choice for hundreds of start-ups who have chosen to set up their base in this city. While it is true that the entry cost is one of the key components while choosing a space to establish base, I also see that a lot of thought goes in assessing the potential of the market and thus factoring in the entry costs and making a wise decision basis the overall ROI. Bangalore continues to offer more every passing year in terms of business opportunities, talent availability, and socio cultures flexibility thus holding a promise like no other city does. With the expansion now having set in around the periphery of the city, I only see more and more companies choosing Bangalore as their preferred city for setting shops.
What are the factors attracting commercial investments in Hyderabad?
For any city to attract commercial investments, it needs to be infrastructure ready and show visible signs of change in terms of feasibility, political will, cultural acceptance as well as growth mind-set. Hyderabad has done everything right to be fuel growth and thus continues to attract commercial investments and others alike.
Do you see Hyderabad surpassing Bangalore in terms of commercial infrastructure development?
It is too premature to comment on whether one will surpass the other. In the now, both cities have their own unique things to offer, and show tremendous growth potential. There are pockets in both these cities that are saturated and yet there are enough and more new areas that hold growth potential. Both the cities have sure done something right to offer sustained growth in their own unique ways and thus, remain very different from each other in many ways.