HYDERABAD: Hyderabad witnessed the highest quantum of office space absorption during the second half of 2019 in the country, surpassing Bengaluru for the top spot, according to global real estate consultant Vestian’s recent report. The city witnessed an addition of 11.2 million square feet of new office space in 2019, which is another record for the city.
According to the report, by the end of 2021, the number of malls in Hyderabad is expected to increase by 12 per cent from the present eight per cent.
The firm said that while the office space market in Hyderabad continues to be dominated by the IT/ITeS sector, accounting for around 50 per cent share of the total absorption, substantial demand for office space also emanated from co-working space operators making their presence felt in the city. The report also claimed that the “city’s residential sector seems to have sailed over the adverse times.” Hyderabad reportedly witnessed the launch of 6,532 units in the second half of 2019, bringing up the total number of new launches in the year to 15,785 units. This depicted a slight increase of four per cent over the number of launches in 2018.
Hyderabad set to supply 35 mn sq ft office space in the next 3 years
Areas such as Bachupally, Tellapur and the Uppal Pocharam stretch are being touted as potential growth areas, primarily on the account of being in the vicinity of employment hubs as well as owing to the improvements witnessed in the infrastructure. According to the study, Hyderabad is slated to witness the supply infusion of a whopping 35 million sq ft of office space in the next three years, coming up in the western office micro-markets.
Speaking to Express, Shrinivas Rao, CEO, Vestian, said, “Quite a few proactive government measures, such as the Look East Policy and the proposed Growth In Dispersion Policy, as well as infrastructure initiatives such as metro rail connectivity and the Strategic Road Development Plan will further strengthen the city, ensuring a more inclusive development and augmenting its growth potential in the forthcoming period.”