Hyderabad among fastest growing real estate markets in Asia Pacific: Cushman & Wakefield
Hyderabad: Hyderabad is one of the fastest growing real estate markets in Asia Pacific and is also home to some of the largest campuses of global technology giants outside the US. The city’s office inventory has grown 11 per cent in the first three quarters (January to September) of 2021 despite the pandemic, the highest […]
Hyderabad: Hyderabad is one of the fastest growing real estate markets in Asia Pacific and is also home to some of the largest campuses of global technology giants outside the US. The city’s office inventory has grown 11 per cent in the first three quarters (January to September) of 2021 despite the pandemic, the highest compared to all other cities in India.
“The segment has doubled in the last four years, and we expect it to grow by another 50 per cent by 2025. Nearly 6 million sq ft of office space has been leased as of September and we expect the overall demand in 2021 to reach about 7.5–8 million sq ft,” Veera Babu, managing director, Cushman & Wakefield (C&W), Hyderabad & East India told Telangana Today.
Large occupiers such as Legato and Qualcomm have pre-leased nearly 2 million sq ft this year, a sign of occupier confidence and their commitment to long-term growth in the city.
Also, nearly 7.1 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. “We expect an additional 3 million sq ft of project completions in Q4 bringing the total to about 10 million sq ft for 2021,” he added.
Government measures
Hyderabad continues to be a preferred IT, life sciences destination. Since the pandemic, it has emerged into a global vaccination hub. Hyderabad remained resilient despite the pandemic. Veera Babu further noted, “Meaningful measures undertaken by the Telangana government have helped the city to bounce back strongly as always.”
Real estate in Hyderabad has witnessed minimal impact compared to other cities and recent data indicates that the real sector is rapidly headed towards a full-fledged recovery. This could be attributed to strong market fundamentals, continued State policy support and infrastructure-led growth.
Veera Babu said, “Office demand is coming back and in fact, C&W has recently concluded the city’s largest enterprise deal of 2021 for a healthcare analytics major. The team at C&W is also helping several data centre majors to set up operations in the city.”
Co-working demand
When asked about how the city is performing in the co-working space, he said, the momentum in the co-working / flexible office space segment will continue. Companies have leased nearly 6,000 seats from flex space operators in 2020.
“In 2021, it has already reached about 7,830 seats by September, and we expect the full year numbers to be around 9,500 seats, recording a 50 per cent plus growth on an annual basis,” he added.
Co-working has become mainstream now and with companies increasingly focusing on capex/cost savings, flexibility, and hub-spoke models etc., C&W expects continued demand for flex spaces going forward in 2022.
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