The commercial real estate market of Hyderabad has witnessed a major upsurge in recent years. The office space leasing activity which was once dominated by the IT City Bengaluru has today taken over by Hyderabad. This has been revealed in the latest data which shows that Hyderabad has emerged as a clear winner in this segment in Q1 2019. Moreover, this growth momentum started in the last quarter of 2018 which continued this year too.
According to real estate experts, the reason behind this surge is due to great last-mile connectivity, expansion of IT/ ITes companies, sound infrastructure and good construction quality of the commercial buildings.
He further said that recently the state Industrial Project Approval and Self-Certification System has allowed that all the approvals related to the construction of commercial spaces will be provided in a maximum of 30 days. This has also given a major boost to the office space leasing activity.
Also, the traction of many IT companies from Bangalore to Hyderabad has attracted many working professionals to move in here. This increase in the working population has impacted the leasing activity particularly in areas like HITEC City and Kondapur. Take a look at some other factors that are acting as a growth modulator for commercial activity in Hyderabad:
Development of new IT Corridors
It is a well-known fact that infrastructural development directly impacts the real estate market of the city. Same is the case with Hyderabad too. The development of new IT corridors like Manikonda, Gachibowli, and Nanakramguda has added a feather to the commercial activity of the city by increasing it to about 30%.
Increase shift to Coworking Spaces
In India, coworking spaces are gaining momentum at a fast pace and this is the reason why most of the startups are today opting for coworking space to start their business. This has led to the growth of coworking spaces in number and Hyderabad is the perfect example of this. The data states that office space leasing by co-working operators has been doubled from 0.3 million sq ft in H1 2018 to 0.7 million sq ft in an area in H1 2019.
Real Estate experts also suggest that the increasing price and rentals of the commercial office space in Bangalore are also a major reason behind the traction of IT companies and startups towards Hyderabad. The office space prices, as well as rentals, are still at the lower side and hence the leasing activity has gained much momentum from last year. For example, many leading companies like Novartis Healthcare, Microsoft, and JP Morgan Chase and Co are now looking into invest in commercial space of upcoming Knowledge City project in Madhapur.
The Future Trend
With the fast pace developments, experts are assured that the growth trajectory will continue to remain the same in coming years too. There are plenty of innovative and expansive commercial projects which are all set to add wings to the leasing activity. Experts believe that the time will come soon when Hyderabad will become a favorable commercial destination amongst International MNCs, Global Corporates as well as established startups.