Hyderabad’s Hitec City continues to be the preferred destination for corporates: Colliers Report
The Hi-tech city in Hyderabad has been the most attractive office destination for multinational companies looking to expand operations in the last two decades. “Hitech city and Gachibowli IT corridor will continue to be the hotspot for hosting IT/ ITes firms owing to ease of travel, well-developed social infrastructure, and upcoming grade A office buildings”, says Hari Prakash, Senior General Manager, Office Services (Hyderabad), Colliers International India.
Over the years, the Secondary Business District (SBD) micromarket comprising locations like Hitec City, Gachibowli and its adjoining areas in Hyderabad, located in the western quadrant of the city have enticed various IT companies, such as Microsoft, Oracle, Google, Dell, Infosys, Wipro, Amazon, etc. to set up their office spaces in Hyderabad.
According to Colliers, driven by expansions of large scale technology companies in 2017, the Hyderabad office market has witnessed a gross absorption of 3.32 million sq ft(YTD September 2017). With 86% share in YTD (Jan-Sep 2017) gross leasing volume, the SBD micromarket continues to be the preferred destination for such companies looking for vast talent pool from across the country and supports talent retention as well.
As per Colliers Research, proximity to SBD and increasing residential developments in Kokapet, the location is likely to be the next emerging destination to attract real estate investments in upcoming years.
“SBD locations such as Hitec city, Financial District, Kondapur, Raidurg, Gachibowli, etc. are witnessing upcoming construction of about 25 million sq ft of office spaces that is likely to increase the total office stock in the city to about 45% by 2020.
However Office space leasing in Hyderabad witnessed a drop of about 21% in Q3 2017 with about 1.24 million sq ft of gross absorption. Some of the transactions in SBD above 0.1 million sq ft include such as Microsoft, Ness Technologies and Karvy Corporate.