HYDERABAD: The city’s commercial real estate sector presents a grim picture at the halfway mark of 2015. According to a half-yearly report by property consultant firm, Cushman & Wakefield, Hyderabad witnessed overall supply of 1.5 million square feet (msf) this quarter - only 59 per cent of the total supply that came in the first half of 2014 (H1 2014).
Nearly 45 per cent of the new supply that became operational during this year belonged to Grade A developments. The overall leasing witnessed 8.5 per cent decline from H1 2014 and was just about 2.8 msf. Grade A leasing activities were fewer in the first half of 2015 at 1.3 msf - a 45 per cent decline from H1 2014. Fewer new leases and increased relocations resulted in a net absorption of 1.88 msf, a 19 per cent decline from H1 2014.
The report revealed that both Madhapur and Gachibowli witnessed maximum leasing and contributed nearly 76 per cent in the first half of 2015 indicating steady demand from IT-ITeS sector. Whilst total pre-commitments during H1 2014 amounted to 0.77 msf, H1 2015 noted only 34,000 sf pre-commitments.