Hyderabad’s Commercial Space in high demand
HYDERABAD: As per real estate consultancy company Jones Lang Lasalle, almost 4.5 million square feet of space is set to be absorbed by the Office market during the year while an additional area of roughly 10 million square feet would be springing up over the next three years.
According to leading indurty specialists, contrary to the general perception of agitation impacting growth, the IT sector is credited with driving up the demand.
The demand in Hyderabad is comparable to that of Pune. Pune is also expected to absorb approximately 4.5 lakh square feet during the year.
In two substantial transactions, Oracle had consumed close to 5,00,000 lakh square feet of office space while Amazon occupied close to 5,40,000 square feet.
However, existing companies who are trying to expand their respective business are the major factors in creating and sustaining the current demand rather than the new upcoming ones.
As per reputable industry analysts, insight is demanded while providing office market. Over the last two-three years, the overall vacancy rates of the commercial asset class have been fluctuating within the range of 8.5 per cent. About 5.7 per cent is the current vacancy.
The hub for IT and ITes companies – Hitec City persists to maintain its reputation of being the most preferred sub-market with the highest net absorption. The locality of Gachibowli in the mean time has been witnessing an increase in enquiries from occupiers.
The city of Hyderabad has limited space for special economic zones available for leasing in the prime markets of Gachibowli and Hitec City, both IT hubs.
The retail market has a 3.6 per cent vacancy from the available stock of 2.7 million square feet.
A supply of roughly 30,000 A Grade residential units is available in the residential market. These units were added during the fiscal year of 2012. The vacancy rate as of the first quarter of 2013 is about 57 per cent. The capital value ranges from Rs. 2800 to RS. 12,000 per square feet for residential projects.
The sales in residential projects in the city has gained the confidence of the rebounding consumer.
