Realty
Bytes: Hyderabad– A fast emerging real estate destination in South India: CBRE
REPORT
·
Commercial office demand is expected to
remain strong and will enjoy upward momentum in 2016-17
·
Approximately 16 million sq. ft. of new
office supply is expected to enter the market in the next three years, IT
corridor to remain dominant market
·
City to witness the completion of about 3.7
million sq. ft. of new investment-grade shopping mall space in two years
·
The availability of large land tracts in
SouthernHyderabad and the proposed IT Corridors could resultin an increase in
demand for housing projects
·
Locations such asKompally and Medchal in
Northern Hyderabad,and Shamshabad, Adibatla and Fab City in theSouth are likelyto
be key industrial markets
According to CBRE India’s latest report ‘The Comeback of Hyderabad’,Hyderabad is regaining prominence as
one of the leading destinations for real estate in South India. Political
stability, the state government’s proactive policies, growing occupier demand,
improved infrastructure, quality educational institutions and the availability
of a large talent pool have helped bring back attention to the city’s real
estate market.
Anshuman Magazine, Chairman & MD, CBRE South
Asia Pvt. Ltd. said, “With the
various investor friendly policies initiated by the state government, and the
planned infrastructure development, Hyderabad will be a destination of choice
for a number of corporates looking to expand or enter the South India Market.
The proposed infrastructure development planned for the city, is creating a
conducive environment and will spur further investment inflow into the city and
the state.”
According
to the report, the IT/ITeS boom several years ago, coupled with the development
of HITEC city,had made Hyderabad the preferred location for technology firms to
set up their operations. While this growth was punctuated by the political
instability surrounding Telangana, however the city is right back on track. In
2008, office stock stood at 23 million
sq. ft. By 2015, this had doubled to approximately 47 million sq. ft.
Traditionally recognized as an office market, Hyderabad is also
witnessing renewed interest for Residential, Retail and Industrial &
Logistics space in the recent past. With the influx of IT professionals, demand
for quality residential also witnessed an uptick. When compared to other South
markets such as Bangalore and Chennai, Hyderabad continues to be the most
affordable market for residential buyers, especially in the premium/luxury and
high end/mid-end segments.
Ram Chandnani, Managing Director, Advisory &
Transaction Services India at CBRE said, “The
year2015 witnessed a marked recovery in
occupier demand on the back of strong leasing activity, the timely completion
of new commercial developments and investment flows across prominent suburban
and peripheral markets. Industry sectors such as IT/ITeS are likely to remain
the dominant demand drivers for office space in the Hyderabad, with banking /
financial services, pharmaceuticals and outsourcing sectors being the other
active sectors that are likely to generate demand for corporate real estate
space.”
As in the case of other cities, commercial development and growth not
only influences residential real estate, but also pushes the development of
retail. Over the past decade, Hyderabad has witnessed its fair share of demand
for high quality organized retail. Total organized retail space in Hyderabad
city stood at 2.7 million sq. ft. as of June 2016, majority of which is
concentrated in Western and Central Hyderabad. This is likely to go up by
almost 4 million sq. ft. of additional supply in key markets over the next two
years, inducing the entry of global retailers into the city.
Various National highways passing through Hyderabad make it a central
point for warehousing activity, while the city’s location is ideally suited for
the export and import industry. Rents in Hyderabad are the most affordable in
the Southern region and occupiers which left the city during the political
crisis are once again revisiting their options here.
The Telangana government
recently passed theTelangana State Industrial Project Approval
and Self-Certification System (TS-IPASS) Bill, whichprovides speedy processing
and clearance forvarious licenses and certificates required forestablishing
industries through a single-windowsystem. This is expected to boost industrial
/manufacturing / warehousing growth in andaround the city.
The resurgence of investment activity coupled with new government
initiatives has prompted the revival of leasing activity over the last couple
of years. Hyderabad will be the city to watch over the next few years as the
potential of real estate development is huge and is yet largely unrealized.
Contact:
|
CBRE
Amritha Marshall
General Manager
T: 9810163212
|
Avian Media
Rahul Jain
T : 9873110866
|
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune
500 and S&P 500 company headquartered in Los Angeles, is the world’s
largest commercial real estate services and investment firm (in terms of 2015
revenue).
The Company has more than 70,000 employees (excluding affiliates),
and serves real estate owners, investors and occupiers through more than 400
offices (excluding affiliates) worldwide. CBRE offers strategic advice and
execution for property sales and leasing; corporate services; property, facilities
and project management; mortgage banking; appraisal and valuation; development
services; investment management; and research and consulting.
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