IT corridor drives office demand in Hyderabad

Hyderabad: The emerging e-commerce and healthcare firms led by tech companies has driven office space demand in the city, said a report by a real estate consulting firm.

According to the recently released findings by CBRE South Asia, supply influx and culmination of pre-commitments resulted to quarterly rise in office space take-up in Hyderabad.

Gipson Paul, Senior Director, CBRE South Asia, said, “Hyderabad witnessed an increase in leasing activity largely due to the culmination of large-sized pre-commitments in investment-grade, quality developments. This trend is likely to continue in the coming quarters.”

While American corporates drove few large-sized deals in the market, the small-to-medium-sized deals continued to dominate leasing activity. Whereas, the supply addition in the city consisted of one medium-sized SEZ development in Raidurg and two medium-sized IT developments in Nanakramguda and Hafeezpet in the extended IT Corridor. However, rental values remained stable across all micro-markets during the consulting firm’s review period.

On a broader view, in India’s top eight markets the leasing activity crossed 20 million sft, during H1 2018. And, about 16 million sft of space was added; an increase of over 40 per cent from H1 2017. While the four cities accounting for over 80 per cent of this supply addition are Bengaluru, Mumbai, Hyderabad and Delhi-NCR, followed by Chennai.