Hyderabad Ranks Amongst Fastest Growing Real-Estate Markets in Asia-Pacific Region
Hyderabad has been registering staggering real-estate growth numbers in the year 2021, with its numbers being consistently on par or better than the rest of the large metropolitan cities of India. Naturally, this growth has propelled Hyderabad to be ranked amongst the fastest growing real-estate markets across the Asia-Pacific region. The city’s commercial real-estate growth in office inventory alone has increased by 11% in the first 9 months of the year despite the lockdown and effects of the second wave of the Covid-19 pandemic.
Commercial workspace sector has grown twice its size compared to four years ago and is expected to grow by another 50-75% over the coming 3 years. Around 60,00,000 sq. ft. of office space has been leased in Hyderabad last checked during the month of September, the trend indicates the total demand to rise to anywhere between 75,00,000 sq. ft. & 80,00,000 sq. ft. by the end of the year. Global multi-national companies like Qualcomm, Salesforce etc. have pre-leased lakhs of sq. ft. in 2021, this confidence in investment from large corporations shows their commitment and promise that Hyderabad offers in terms of long-term growth.
Also, nearly 71,00,000 million sq. ft. of office space has been newly completed until the third quarter this year (September) and that again is the highest among all tier 1 cities in India. Expectations suggest an additional 30,00,000 sq. ft. of project completions in Q4 bringing the total to about 10 million sq. ft. for 2021. While Hyderabad has always been the destination for IT companies & life sciences organizations, it has emerged as India’s new biotechnology epicentre and global vaccination hub during the pandemic. Appropriate measures taken by the state government of Telangana have also helped the city’s markets remain resilient and bounce back stronger from the pandemic.
Infrastructure led growth and strong market fundamentals are key factors of the city’s recovery. Another sector where there has been remarkable growth is Hyderabad’s co-working spaces segment in the office space real-estate market. Companies like WeWork & AWFIS have large co-working spaces and solutions on offer for customers looking for working spaces. Around 6,000 seats were leased from companies in 2020 and this number is expected to grow to 9,500 seats by the end of 2021. As co-working becomes more and more a mainstream concept, the growth in this sector is continued to grow and become a key differentiator in the commercial real-estate sector.
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