HYDERABAD: With multinational companies such as Amazon and Google showing interest to expand their operations in Hyderabad, the demand for commercial and office spaces in Hyderabad is expected to increase.
According to Telangana Real Estate Developers Association (TREDA) reports, Amazon has sought 8 lakh sft of office space and Deloitte 2 million sft (square feet) while companies like Google are expected to scale up their operations, thus signifying an increase in demand for office space.
“Soon the office and commercial spaces in the city will see more occupancy and the demand will rise further. It might take a year for the companies to start operations and within six months the demand for office space in Hyderabad will rise as the government’s proactive policies are drawing companies to Hyderabad,” said P Dasharath Reddy, TREDA president.
According to various surveys and reports, Hyderabad had seen the lowest number of real estate project launches and sales in the last one and a half years but things seem to be changing with new companies showing interest in the once-sought-after city. For instance, app-based taxi service company Uber will occupy about 1.20 lakh sft of office space soon.
In an interesting development, it is not just information technology (IT) and IT- enabled services (ITES) companies that are contributing to the growth of office space, but health care companies too are creating demand in a big way.
According to property consultancy and research company Knight Frank, Care Hospitals has acquired 3 lakh sft of space and Fernandez Hospital 1 lakh sft.
“In our recent report we have stressed the contribution of the health care sector to the growth of the demand for commercial and office space in Hyderabad. With more IT and health care companies planning to scale up operations soon, the office space in Hyderabad has to be increased as there is a shortage of about 16 pc office space in the city,” said Vasudevan Iyer, director (corporate senior management) of Knight Frank.
With the city already facing shortage of quality office space, the arrival of new companies will only push up the demand.