HYDERABAD: As Hyderabad realty is still struggling to come out of the slump and regain its vibrancy, building and commercial space owners in Central Hyderabad are facing a tough time due to decrease in rental occupations.
In quite a surprising trend, many office and commercial spaces appear with ‘to let’ boards even in the centre of the city where owning or renting a commercial space was regarded as an expensive affair. Even in prime locations like Punjagutta, Somajiguda, Begumpet and Abids many commercial complexes are lying vacant. While a decrease in business activity is regarded as one reason, other major reasons are said to be traffic problem and availability of much better and posh places in areas like Madhapur and Hitec City.
The reason for decrease in rental occupation of commercial space in Central Hyderabad is the availability of much better commercial spaces at the same or even at lower prices in locations like Hitec City. Also, the central business district (CBD) where most of the business activity took place was concentrated around Abids earlier. Later, it moved to areas like Begumpet, Punjagutta and Banjara Hills. Now, no particular place can be regarded as CBD with satellite CBDs springing up all over the city, says Narotham Reddy of Cybercity Builders & Developers.
The horizontal growth of Hyderabad has created new shopping and business areas such as AS Rao Nagar, Kompally, Kukatpally, Miyapur, Habsiguda, Madhapur, Attapur and Vanasthalipuram in the past three to six years, and realty experts attribute the decrease in commercial space occupation in Central Hyderabad to it.
Picture of Reality
- Rental occupation of commercial spaces has decreased in Central Hyderabad.
- Traffic congestion and emergence of new shopping destinations and office spaces is said to be the main reason.
- Hyderabad is moving from one ‘central business district’ concept to satellite CBDs all over the city.
- Posh ambience and affordable rental prices draw businesses and offices to destinations like Hitec City and Madhapur.
But industry sources assert that there is no need to worry about the trend as the overall commercial space occupation in Hyderabad has not decreased but is just moving to newer locations.
Earlier, if people wanted to do shopping, Abids and Koti were preferred destinations. Areas like Begumpet and Banjara Hills were regarded as posh locations for offices. Now the same space can be obtained in posh locations like Hitec City at the same price. This is driving commercial establishments to newer locations, says N Nagesh Reddy, president of the Hyderabad chapter of Builders Association of India.