Hyderabad’s vibrant job sector coupled with highly competitive real estate prices have led to an increase in demand for the office spaces. A survey found that the city is right now experiencing an all time high demand for office spaces. In 2017, almost 5.6 million sq.ft. was leased out. In the next five years, the city is expected to see a 78% growth in office space.
In a report of Telangana Today, a top real estate company remarked most of the spaces absorbed were by the Banking, Financial services, Insurance, IT/ITES corporate and multinational analytics companies. Apart from the rising demand for office spaces, the city is also experiencing an increase in the rental values along its IT, SEZ and extended IT corridors.
Major office locations in Hyderabad
Nanakramguda and Gachibowli are the primary areas to be included in the Financial District. These two areas are situated at about ten kilometers from the Hitech City. Along with these two areas ,the ITES corridor in the west Hyderabad that cover the areas like Hitech city, Kothaguda, Ayyappa Society, Kavuri Hills, Manikonda and Kondapur have created lakhs of job opportunities. However, following tremendous demand for the office spaces, the Telangana State Government has thought of expanding the financial district to areas like Nagulapalli, Tellapur and Puppalaguda.
Factors that contribute to the demand for office spaces
The factors that make Hyderabad most preferred centre for office space investment are as follows:
Affordable: The rate of commercial units and lands in Hyderabad is cheaper compared to the other Indian cities. There is also ample land bank and the city is far behind the saturation. So, developers and office seekers are showing great interest to invest.
As Small and Medium Enterprises or startups have budget crunches, the city is also encouraging co-working spaces. Cost is not the only factor that is acting in favor of shared spaces. Such spaces are convenient, flexible and safe; therefore, the commercial space seekers are willing to take lease of such properties.
Home to major companies: Though increasing number of new companies are willing to set up their debut project in Hyderabad, Multinationals like Apple, Oracle, Google, Microsoft, HCL, Cognizant, Wipro, Infosys, TCS and Amazon all have plans to expand their employee strength and add up office spaces. Last year P&G and Johnson and Johnson set up their manufacturing unit at Hyderabad.
Infrastructure:In addition to the well connected domestic airlines, the city also enjoys international connectivity. This is a reason why International companies are interested to set up their base in Hyderabad. Multinational companies prefer to invest in cities where the employees do not have to spend much time on travelling. Telangana Government has initiated different road development projects focused on all major areas to smoothen traffic movements during peak hours. Metro railway project is completed covering more or less all important business destinations. The water supply facilities have also been improved. The Government has also worked on the supporting infrastructure to make the city a true commercial haven.
Hyderabad has the advantage of planned development and positive interest of businesses in setting up offices in the city. This will not only create additional job opportunities in Hyderabad but also the demand for office spaces may rise further.