Hyderabad next best commercial destination after Bengaluru
HYDERABAD: Hyderabad is witnessing robust growth as it is now being considered an alternative commercial destination to Bengaluru. The city has been registering massive fresh hiring as well as pay rises over the last six months.
According to a Real Estate Thematic report of Motilal Oswal Financial Services Limited, about 55 per cent of the commercial space has been absorbed by IT/ ITes companies.The markets of Hyderabad, Bengaluru and Pune rate higher on demand scale as these are the growing commercial markets in India. The largest IT hubs in India are also based here and are the biggest consumers of office space.
The report said that Hyderabad, Bengaluru, and Pune are IT hubs with 45 to 55 per cent of total office space absorption rate. While mid- and small-scale businesses still continue to recover post the impact of Covid-related lockdowns, the job market has seen massive hiring activity led by IT/ITeS companies.
The report mentioned that 47 per cent of the developers in Hyderabad exited the market during the 2012 to 2019 period and the city ranked third to witness lowest exits by developers amongst the top nine cities. Few markets such as Pune, Hyderabad and Chennai are conducive for price hikes, while broader industry price hikes are still 12 to 18 months away and a sustained and disciplined price rise will lead to a substantial increase in profit pool for developers.
Hyderabad is emerging as an expansion hub for many south-based developers, given the strong growth outlook, launches will remain higher than the demand, the report said. This apart, the residential real estate sector is poised for an upcycle, primarily buoyed by the improved affordability.
Meanwhile, Bengaluru and Pune markets score high, given their potential as a growing commercial hub and due to the attractive IT talent. These markets have a low inventory hangover that bodes well for a relatively higher value growth. Mumbai is the next best choice as it stands to benefit from the long-term, pent-up demand due to improved affordability.
Real estate sector also on the high
Hyderabad is emerging as an expansion hub for many south-based developers, given the strong growth outlook, launches will remain higher than the demand, the report said. The residential real estate sector is poised for an upcycle, it added