HYDERABAD: Hyderabad is set to witness the addition of approximately 35-38 million sq. ft. of high-quality business parks in the next two years. From swanky residential complexes to state-of-the-art commercial spaces and retail avenues, Hyderabad’s real estate market is offering many opportunities for all sections of homebuyers, investors, entrepreneurs and others.
A robust business environment has led to global corporations establishing outsourcing centres, back offices, R&D facilities and regional headquarters in Hyderabad.This has led to a surge in demand for office space which in turn led to a marked increase in investment-grade office stock, surpassing 100 million sq. ft. in 2022 and reaching 119 million sq. ft. by the end of September 2023 quarter, a 63% increase from 2019, as per a CBRE report.Hyderabad emerged among the top three cities dominating office space leasing in January-September 2023 at 6.6 million sq.ft., with a 35% YoY increase. Key sectors driving absorption included life sciences, BFSI, and technology.
Major launches
The city is expecting the launch of over 1,30,000 residential units in the next two to three years. The expansion of the technology sector and industrialisation has driven residential development near the key office micro-markets of IT Corridor and Extended IT Corridor. The increasing demand from employees of MNCs, along with high-quality infrastructure development, has stimulated the residential market and enhanced overall living standards.The rapidly developing infrastructure has positioned Hyderabad as a promising destination for real estate investment.
Emerging submarkets
Gachibowli, Kondapur, Nallagandla, Kokapet, Puppalaguda, Narsingi, Tellapur, Kompally and Shamirpet are emerging submarkets that are recording steep growth. The expansion of the IT corridor, improved connectivity through the ORR, and amenities like schools and healthcare facilities contribute to their popularity.
Outlook bright
Hyderabad’s real estate market beyond 2023 appears bright. Ongoing infrastructure development, burgeoning IT and corporate sectors, and a rising population are expected to drive expansion.The Hyderabad market also sees significant development in 3BHK units above 2,000 sq.ft., reflecting a preference for more spacious residences. India’s real estate is projected to maintain growth momentum in the coming quarters, with improving domestic inflation levels and India’s economic growth outpacing global trends. The RBI’s decision to maintain the repo rate is expected to further support the sector in 2024.
