Hyderabad declared as India's top commercial real estate destination
Real Estate

Hyderabad declared as India's top commercial real estate destination

Hyderabad exceeded Bengaluru as India’s top commercial real estate (CRE) destination in terms of gross office space demand during the July-September quarter this calendar year, since occupiers focused on large block deals, particularly from the BFSI sector and flexible workplace operators.

As per Colliers, after an average performance in Q2 2021, Hyderabad developed as one of the most resilient cities in terms of demand-supply dynamics.

For the first time, Hyderabad had the highest share in leasing volume at 2.5 million sq ft (MSF), exceeding Bengaluru. But, on a year-to-date (YTD) basis, India’s silicon valley is the market leader.

Overall, the top six cities of India recorded about 10.3 MSF of office gross absorption in Q3 this year, the highest volume registered since Q1 last year. IT-ITeS driven cities of Bengaluru, Hyderabad, and Pune estimated 62% of the gross absorption in Q3 this year.

Managing director for office services (south India), Colliers, Arpit Mehrotra, told the media that the development in Asia is driven by cities as much as nations. Bengaluru and Hyderabad should be the fastest and third fastest-growing cities of Asia, respectively, over 2022-24. While Bengaluru has always been the blue-eyed boy of CRE, Hyderabad has displayed a large amount of potential and improved by leaps and bounds, particularly in the last decade.

A refreshed and planned focus on the city’s infrastructure, talent availability, relatively better prices, proactive state government and favourable state policies have added to Hyderabad’s CRE growth story.

The state plans to create multiple integrated projects across the city to keep enhancing its real estate momentum. In the last few years, technology giants like Apple, Google, Facebook and Amazon have joined this market, leading to tremendous economic development.

In the Hyderabad market, BFSI and flexible workplace sectors took the maximum share in leasing accounting for 66% of the total demand.

The micro-market of Rai Durg witnessed the maximum leasing traction estimating 53% of the overall demand, while Hitec City provided 40%.

Hyderabad was additionally the top market in terms of office space supply during Q3 this year. The quarter observed the highest supply since Q2 2020 at 10.8 MSF in Q3 2021, with Hyderabad and Pune providing the maximum share at 29% and 25%, respectively.

Image Source

Hyderabad exceeded Bengaluru as India’s top commercial real estate (CRE) destination in terms of gross office space demand during the July-September quarter this calendar year, since occupiers focused on large block deals, particularly from the BFSI sector and flexible workplace operators. As per Colliers, after an average performance in Q2 2021, Hyderabad developed as one of the most resilient cities in terms of demand-supply dynamics. For the first time, Hyderabad had the highest share in leasing volume at 2.5 million sq ft (MSF), exceeding Bengaluru. But, on a year-to-date (YTD) basis, India’s silicon valley is the market leader. Overall, the top six cities of India recorded about 10.3 MSF of office gross absorption in Q3 this year, the highest volume registered since Q1 last year. IT-ITeS driven cities of Bengaluru, Hyderabad, and Pune estimated 62% of the gross absorption in Q3 this year. Managing director for office services (south India), Colliers, Arpit Mehrotra, told the media that the development in Asia is driven by cities as much as nations. Bengaluru and Hyderabad should be the fastest and third fastest-growing cities of Asia, respectively, over 2022-24. While Bengaluru has always been the blue-eyed boy of CRE, Hyderabad has displayed a large amount of potential and improved by leaps and bounds, particularly in the last decade. A refreshed and planned focus on the city’s infrastructure, talent availability, relatively better prices, proactive state government and favourable state policies have added to Hyderabad’s CRE growth story. The state plans to create multiple integrated projects across the city to keep enhancing its real estate momentum. In the last few years, technology giants like Apple, Google, Facebook and Amazon have joined this market, leading to tremendous economic development. In the Hyderabad market, BFSI and flexible workplace sectors took the maximum share in leasing accounting for 66% of the total demand. The micro-market of Rai Durg witnessed the maximum leasing traction estimating 53% of the overall demand, while Hitec City provided 40%. Hyderabad was additionally the top market in terms of office space supply during Q3 this year. The quarter observed the highest supply since Q2 2020 at 10.8 MSF in Q3 2021, with Hyderabad and Pune providing the maximum share at 29% and 25%, respectively. Image Source

Next Story
Real Estate

Mahindra Lifespaces Bags Rs 12.5 billion Redevelopment in Mulund

Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has been appointed as the preferred developer for the redevelopment of a premium housing society in Mulund (West), Mumbai. The project will be developed across a 3.08-acre land parcel, with an estimated development value of approximately Rs 12.5 billion. Strategically located, the site enjoys proximity to major connectivity points—just 1.4 km from the upcoming Mumbai Metro Line 5 and 0.8 km from the Goregaon-Mulund Link Road. It also offers seamless access to the Eastern Expre..

Next Story
Infrastructure Urban

Snowman Adds Warehouses in Kolkata and Krishnapatnam

Snowman Logistics, India’s leading integrated temperature-controlled logistics company, has announced the commencement of operations at its two new state-of-the-art, owned cold storage facilities in Kolkata and Krishnapatnam. With these additions, the company’s total pallet capacity has reached 1,50,754, spanning 43 warehouses in 20 cities across the country. The newly operational Kolkata facility offers a storage capacity of 5,630 pallets, while the Krishnapatnam facility holds 3,927 pallets. These warehouses are equipped with advanced automation and infrastructure designed to enhanc..

Next Story
Resources

Noesis Enables IHCL Hotel Deal in Udupi–Manipal Corridor

NOESIS Capital Advisors, India’s leading hotel investment advisory firm, has successfully facilitated a landmark hospitality transaction in the Udupi–Manipal region of Karnataka. The deal involves the acquisition of a nearly completed, 130-key upscale hotel that will operate under one of the premium brands of IHCL, reinforcing NOESIS’ position as a preferred partner for strategic hospitality transactions across India. Strategically located on the Udupi–Manipal Highway, the 1.03-acre property will cater to business travellers, pilgrims and families visiting Manipal University. With..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?