Hyderabad: Hyderabad real estate segment has received an investment of about Rs 10,100 crore since the beginning of 2015 till June this year. Compared to this, the city received Rs 1,800 crore from 2008 to 2014, said a JLL study.
Announcing this at the launch of new its new corporate office at Hitech City, JLL India Chief Executive Officer and Country Head Ramesh Nair said that focus on infrastructure, strong economic growth, development of world-class office and residential assets and progressive reforms introduced in the recent years have positively impacted the investors’ and occupiers preference for the city. The office segment attracted 70 per cent of the investments, he said
Office, residential and warehousing continue to attract maximum investments, he said. Compared to other top cities, Hyderabad’s share of net absorption in office has witnessed a surge of 27 per cent in the first half of this year. There was just an eight per cent increase in the corresponding period last year. Going ahead, Hyderabad is likely to be the front runner in office segment with 13.2 million sqft, constituting about 28 per cent of the overall new completions in 2019. About 60 per cent of this space is pre-committed.
In 2019, the new completions in the office segment in Hyderabad to remain highest. While new launches in the residential segment have declines, sales have seen continuous rise since the second half of 2017, it said.
“Formation of Telangana has added to the growth potential of the city. There is a growing preference among global as well as domestic companies toward quality assets. Expansion by co-working operators, BFSI and select IT and ITeS companies has resulted in the strong surge in Hyderabad. Our outlook on Hyderabad remains positive,” Nair said.
Compared to this, he net absorption in other cities remained relatively slower as the markets continued to witness consolidation, primarily in IT and ITeS domain, and relocation of corporates in a bid to lower costs, Nair said adding that Hyderabad ranks second globally on the JLL’s City Momentum Index in 2019.
“In the last few years, global technology giants and companies have entered Hyderabad market resulting in its tremendous economic development. Newly developed infrastructure has improved connectivity and aided in improved living standards,” said Sandip Patnaik, Managing Director- Hyderabad, JLL India.
More than 40 per cent of the residential launches were in the price range of Rs 75 lakh and Rs one crore.
JLL has been in Hyderabad for nearly 15 years and now has 1,200 people working for it here. The newly opened office can accommodate 150 people involved in corporate roles. The headcount has been rising at ten per cent, he said.