Hyderabad corroborating its real estate growth
Hyderabad: The city of Hyderabad is amongst the prominent destinations for IT within India in addition to being the capital city of the Indian state of Andhra Pradesh. Hyderabad city took the initial steps into the IT industry back in 2004, and over the period of the last fifteen years the city has borne witness to numerous changes in its skyline.
Impelled and actuated by a proactive government and an efficient city planning, Hyderabad has absorbed prodigious development in the sector of real estate, with International, national as well as local developers investing in the city. Quality real estate has been developed to support the growth of the city by these developers.
As per the CEO Asia Pacific, JLL – Alastair Hughes, the ontogeny of the international airport, Outer Ring Road and PVNR Expressway are the few conspicuous developments, which can be ascribed as the factors responsible for changing the face of the city and in fashioning Hyderabad as an investment friendly city of India. This in turn has translated into the facilitation of sundry major business houses shifting their operations to the city of Hyderabad.
Despite the political instability that had occurred a couple of years back, and had severely dented the overall investment sentiments of Hyderabad, encouraged by the present stable political scenario it is now boomeranging back.
Hyderabad’s realty sector is chiefly being steered by the services sector, due to which the city’s office space leasing business has become quite lucrative. Within the last two years approximately 12.6 million square feet of office space has been leased out.
Hyderabad’s residential business is in its inchoate stages and already it has marketed various key projects so far. As per the Managing Director Hyderabad Jones Lang LaSalle India – Sandip Patnaik, office space investments within Hyderabad have started growing strong roots of growth, with capital values for commercial properties rising roughly by fifteen per cent year on year even after remaining stable for close to four quarters.
Hyderabad possesses stocks approximately amounting to 26 million square feet of multi-tenanted leasable office space having occupancy of roughly 95 per cent. Furthermore, 11 million square feet is presently under construction and should be functional within the next three years. With the entry of both international as well as national developers within the city has remarkably raised the quality and services of the existing office spaces in recent times.
Over the period of last one year, Hyderabad’s residential property appreciation has been close to 17 per cent. After being in the doldrums for two years the residential market has started improving since the fiscal of 2012. With the modification of GO-45, a significant increment in launches was recorded as well as sales too began improving.
Capital values started increasing as the new project launches were priced higher than the market average. Hyderabad’s retail activity for the most part is primarily focused on the high streets due to space constraints within the existing malls. Malls, which are under construction like Forum Crystal Mall, and Manjeera Trinity Mall are witnessing strong pre-leasing activity due to the limited supply of mall space that exists in Hyderabad.
A multitude of various industrial and warehousing corridors along the Bangalore Highway and Nagpur Highway as well as certain other parts around the Outer Ring Road have a huge capacity of increasing the real estate value of Hyderabad. This demand is fueled by an exciting agglomeration of both international and Indian players being eager to establish their respective operations within these industrial areas. Good infrastructure and abundant land availability are chiefly driving the interest for these players.
The western region of Hyderabad is categorically the key investment destination of the city for commercial space investment and it would continue to retain its momentum in the long run. Locations like APPA Junction, Kowlur, Kokapet, Mokila, Narsingi, Old Mumbai Highway, Pupulguda and Shankarpally etc situated in the west and Vijayawada highway and Warangal highway in the east should definitely feature on an investor’s watch list.
