Hyderabad to see 16 million sq ft office space addition in 3 years
HYDERABABD : Enthused by the entry of technology majors such as Google and Apple, the demand for commercial office space in Hyderabad is expected to remain strong and could see upward momentum in 2016-17 boosting the number of leasing transactions
Hyderabad is expected to see addition of nearly 16 million square feet of new office supply over the next three years, mostly in the suburban and peripheral locations of the city (IT and the Extended IT Corridors), said the property consultant in its latest report on Hyderabad real estate. New supply will consist of high quality investment-grade projects which are expected to cater to the growing demand for office space in the coming years, it said.
The increase in office space take-up was expected to be driven by the consolidation and expansion of IT majors. The IT sector will lead in demand for office space, followed by the banking / financial services, pharmaceuticals and outsourcing sectors. Emerging sectors include e-commerce and bio-technology.
“The current solid demand and supply dynamics are expected to result in rental growth, particularly in core markets such as the IT Corridor. This growth is likely to be sustained over the next two to three years, following which it may begin to taper off,” said the report.
Occupiers are expected to pre-commit to space in under-construction developments to safeguard against any future rental increases, the report said, adding that the IT Corridor will most likely remain the leading IT hub of Hyderabad.
Source : ET Realty