IT & banking drive Hyderabad’s office boom

Hyderabad has attracted over Rs 10,000 crore worth of real estate investment in the last 4 years, compared to Rs 1,800 crore from 2008-2014, the latest JLL study reports. The research released last week, cited strong economic growth and development of world-class grade A offices and high quality residential assets as the primary reasons for the increased attraction of investors and occupiers towards the city. 

According to the study, offices attracted almost 70% of the total 10,000 crore. CEO and Country Head of JLL India, Ramesh Nair, said “The formation of Telengana state has added to the growth potential of the city. There is a growing preference among global as well as domestic occupier companies toward quality assets.”

The demand for office space in Hyderabad rising is primarily led by IT/ITeS (37%), closely followed by BFSI companies and co-working space operators, which are growing rapidly in India. Pre-commitments of up to 500,000 sq ft being made would indicate a strong positive outlook of the city, from both local and foreign companies. Among these are 250,000 sq ft taken up by WeWork, and 300,000 sq ft from Simpliwork.

This huge inflow in investment has doubled the average land price in the city, from Rs 25 crore per acre in 2017 to a massive Rs 50 crore per acre today. 

Going ahead, Hyderabad is likely to be at the forefront of the office asset class for the whole of India, with its 13.2 million sq ft, taking up about 30% of the total new office completions in India in 2019. 
 

JLL is a sectorial club partner for India GRI, which connects India’s and the globes leading C-level real estate developers, lenders and investors. It will be held on the 18-19 September in Mumbai. 

Article by Matt Harris