IT corridor drives office demand in Hyderabad

IT corridor drives office demand in Hyderabad
Highlights

The emerging ecommerce and healthcare firms led by tech companies has driven office space demand in the city, said a report by a real estate consulting firm

Hyderabad: The emerging e-commerce and healthcare firms led by tech companies has driven office space demand in the city, said a report by a real estate consulting firm.

According to the recently released findings by CBRE South Asia, supply influx and culmination of pre-commitments resulted to quarterly rise in office space take-up in Hyderabad.

Gipson Paul, Senior Director, CBRE South Asia, said, “Hyderabad witnessed an increase in leasing activity largely due to the culmination of large-sized pre-commitments in investment-grade, quality developments. This trend is likely to continue in the coming quarters.”

While American corporates drove few large-sized deals in the market, the small-to-medium-sized deals continued to dominate leasing activity. Whereas, the supply addition in the city consisted of one medium-sized SEZ development in Raidurg and two medium-sized IT developments in Nanakramguda and Hafeezpet in the extended IT Corridor. However, rental values remained stable across all micro-markets during the consulting firm’s review period.

On a broader view, in India’s top eight markets the leasing activity crossed 20 million sft, during H1 2018. And, about 16 million sft of space was added; an increase of over 40 per cent from H1 2017. While the four cities accounting for over 80 per cent of this supply addition are Bengaluru, Mumbai, Hyderabad and Delhi-NCR, followed by Chennai.

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