Hyderabad, the capital of Telangana is one of the most sought-after cities in Southern India. Known as a melting pot of new businesses and established enterprises, the city has a positive attitude towards real estate development, enhanced by key infrastructure initiatives undertaken. This has led to an unprecedented growth in the commercial real estate of the city in the recent years. Here’s a quick look at the top three CRE locations in the city:
Established in the year 1998, HITEC City has seen a meteoric rise shortly after the announcement of the IT Incentives Policy making this micro- location an IT/ITeS hub. With good infrastructure and connectivity, Hitec city continues to be a preferred office destination, led by the IT/ITeS sector. Additionally, the HITEC City Metro, a part of the Nagole-Raidurgam blue line, is expected to be operational by early 2019 – thereby increasing the attractiveness of this region. Apart from infrastructure developments, this region is a thriving cornucopia of retail spaces, malls, recreational centers, lounges and cafes that add to its overall locational appeal. The average office space rental values are in the range of INR 50 – 65/sq. ft. per month.
In Q1 and Q2 2017 cumulatively, Madhapur has clocked-in more than half of the total quantum office space transacted in the city. The area also hosts quality paying guest and service apartment accommodations making it favorable for out-of-town hires who want to live close to their workplace. Largely driven by the IT/ITeS sector that prefers to set up offices in the IT corridor, the average office space rental values in Madhapur fall in the range of INR 45 – 60/Sq. Ft. per month. Besides, Madhapur is also a retail hub with multiple avenues for recreation for the resident workforce.
Located west of the IT corridor, Gachibowli’s growth has been further spurred by the creation of Financial District in the region. As the name suggests, it is a preferred location with financial and investment companies, and home to several national and international banking firms such as ICICI and DBS. Its proximity to the 162-km long Jawaharlal Nehru Outer Ring Road allows unparalleled connectivity to the international airport at Shamshabad and easy accessibility to peripheral locations, thus making it an attractive investment destination as well. With average office space rentals ranging between INR 45 – 50/Sq. Ft. per month, it is best suited for companies that are looking to expand or reduce their occupancy costs owing to the availability of quality office projects at relatively lower costs.
Further demand from IT/ITeS and BFSI sector companies will continue to drive the dynamics of this market and the spill over demand from other key office markets shall provide a significant boost to the area. Thus, the region will continue to see an influx of companies, with an annual projection of rental rates to increase by 5-6%. Availability of large land parcel at competitive price points makes the area a hotspot for companies that are looking to build offices from scratch.
Today, Hyderabad meets expectations of both large and small organizations alike, attributable to factors such as connectivity, infrastructure, lower rents and larger office space availability. Going forward, it is expected to optimize the opportunity to be at the forefront of the ever-changing landscape of the IT/ITeS industry in the country and create a stronghold for itself.