Hyderabad to join 100 mn sq ft club in commercial space soon
Hyderabad: The demand for office space is being witnessed in the IT and ITES segments.Hyderabad could soon join the 100 million sq ft commercial space league. Currently, the commercial space is pegged around 76 million sq ft and the additional space will come about from more than 40 IT parks, whose works are in various […]
Hyderabad: The demand for office space is being witnessed in the IT and ITES segments.Hyderabad could soon join the 100 million sq ft commercial space league. Currently, the commercial space is pegged around 76 million sq ft and the additional space will come about from more than 40 IT parks, whose works are in various stages.
While manufacturing, life sciences and other sectors are growing significantly, the bulk of the demand for the office space will come from the IT and ITES segments, Veera Babu, Hyderabad & East India Managing Director of real estate consultancy firm Cushman & Wakefield, said.Three other clusters are now in the 100 million-plus sq ft category. They are Bengaluru (160 million sq ft), NCR and Delhi (110 million sq ft) and Mumbai Metorpolitan Region (105 million sq ft). “A lot of IT parks projects are coming in the south-western part of Hyderabad towards Gachibowli and Kokapet side. Telangana has unlimited FSI and these days each is about one million sq ft. Going by the momentum, we feel that Hyderabad will touch 100 million sq ft in two years by end of 2023,” he said.
At 100 million sq ft, the employment in these sectors will be about one lakh. Currently, IT and ITES sectors have close to 6.5 lakh working. BFSI segment is also flourishing in the city and about 1.5 to 1.8 lakh people are already working in this.
“There is renewed interest in biotech and life sciences due to Covid. Shamirpet biotech cluster is seeing traction from private players. The biotech and IT clusters differ in their configuration. The laboratories are bigger and hence, need huge capex in the initial stages. Hyderabad is the third city after Pune and Bengaluru to have a biotech cluster. However, the employment numbers in this sector will be low compared to IT and ITES segment, which can see volumes increase in a quick time. The life science and biotech segments are all about adding value and not volumes,” he said.
The State government is putting in focused effort on Pharma City. It is now working on a semi-conductor policy. Hyderabad is also seen as a favourable destination for data centres as some companies are doing the spade work. “Covid has increased data usage and this necessitates local data centres to reduce latency,” he said.
Hyderabad is already the preferred location for Amazon, which announced three data centres with about US $3 billion investment. Various reports have suggested that Microsoft is also setting up three data centres in Hyderabad.
The State’s ‘look east’ policy has stirred the companies to look at the eastern part of the city. However, the Uppal side of the city was traditionally an industrial area. Now, with conversion to IT parks being allowed, more land will be available and this will start showing results in a few years, he said.
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