Hyderabad: In an effort that will solidify its image as IT destination, Hyderabad most likely will beat Bengaluru this year in terms of the office space absorption, according to KT Rama Rao, TRS working president and former IT Minister.
The two cities boost of having vibrant and conducive atmosphere that fosters IT growth and Bengaluru has been leading in terms of office space all these years.
“This might be the year where Hyderabad will go past Bengaluru in office space absorption. It might not beat Bengaluru by miles but looks it will surely inch ahead,” Rao said adding that Hyderabad now accounts for about 27 per cent of the total office space absorbed in India.
The exports from Hyderabad touched an all-time high of Rs 1.09 lakh crore as of March 2019. “The IT exports from the city were Rs 55,258 crore for the year 2013-14. We then set an audacious target to double the exports from Hyderabad in five years. At Rs 1.09 lakh crore now, we have succeeded in achieving that,” said Rao at the launch of JLL India’s new corporate office at Hitec City on Wednesday.
The increase in exports also reflected increasing office space in absorption, which is likely to touch 11 million sqft by end of this year. Bengaluru, on the other hand, takes about 11-12 million sqft office space every year, said KTR. Going by the current trend, Hyderabad will absorb much more space next year, he said adding that the city has been attracting new IT companies even as the existing ones were expanding.
Also, the vacancy level, which is a key indicator of health of commercial space segment, is below four per cent in Hyderabad compared to 18 per cent in many other cities in the country, he said. The supply scenario is also improving as more developers are working to bring Grade A space into circulation.
On decentralising growth, KTR said the Government had already launched a Look East Policy that will offer fiscal incentives for companies setting up operations in the eastern side of the city (Uppal) and towards northern side (Kompally-Medchal).
On economic slowdown he said: “When other nations get costlier, India will be a bright spot and within India Hyderabad and Telangana will be key destinations. I can assure the real estate builders, developers and other stakeholders that the Hyderabad story has just started unfolding,” he said.