HYDERABAD: Office space sale in Hyderabad has increased over threefold in the last five years, according to a report released on Wednesday by property consultant firm Knight Frank. Titled ‘Work From Hyderabad’, the report is based on research conducted by the company. “Hyderabad off ice transactions was at 0.44 mn sqm in 2014, which has now increased to 1.19 mn sqm. Average office rentals have also shot up in the last five years — from `452/sqm in 2014 to 656.6/sqm currently,” it states.
The report attributes the spike in demand for office spaces to the changing nature of the city’s IT industry. “The mainstay of Hyderabad’s office market has for long been the IT sector but this was limited to back-end operations and outsourced processes i.e., BPOs (Business Process Outsourcing) and KPOs (Knowledge Process Outsourcing). Today, the focus of these occupiers is on captive production and product development functions,” the report says. It, however, notes that there has been a slump in office transaction volume this year due to Covid-19. “It is noteworthy that despite low business volumes in 2020, office rentals in the city have remained stable so far. In fact, Hyderabad is one of the few cities that has recorded a positive rental growth of 2 per cent year-onyear (YoY) in Q3 2020,” it says.
Commenting on the real estate market, Samson Arthur, branch director- Hyderabad, Knight Frank India, said, “At the heart of this city is a story of resilience. Capital to the youngest State in India, Hyderabad has been ranked high across categories of living and business. It is now emerging with modern business clusters and holds promise for new industrial ecosystems on the lines of the successful IT sector.”
Air passenger traffic rises
The firm’s report says Hyderabad airport’s share of passenger traffic handled in the country has increased from 5.5% in 2014-15 to 6.4% in 2019-20. Apple Mobility data trends show improved mobility (+6% for driving and +21% for walking) in Hyd by Oct 2020. It is ahead of other top cities on both modes of mobility