Property
in Hyderabad commands lower rentals than does property in most other cities.
This combined with a favorable business environment and an availability of
office spaces is attracting large commercial brands and outside developers to
Hyderabad. The large influx of global brands will not only lead to greater
commercial success in Hyderabad but also will lead to greater demand for new projects in Hyderabad.
Crunching the Numbers
While
Hyderabad is a relatively small city when compared to larger metros such as
Mumbai and Kolkata, it recorded a demand for office space last year that was
more than three times that of Mumbai and four times that of Kolkata. Luxury property in Hyderabad will also
benefit, as there will be greater demand for houses from workers who will be employed
at the newly leased commercial spaces. Three factors have been in favor of
Hyderabad including a favorable business environment, the availability of high
quality office space, and competitive leasing rates.
What the Future Holds
Commercial
property in Hyderabad benefited
from a thirty seven percent hike in leasing activity last year as compared to
the year before last. This expansion in demand for commercial property in Hyderabad is expected to
continue this year as well, as new companies, particularly in the technology
and pharmaceutical sector, enter Hyderabad. IT and ITeS companies leased 85
percent of the office space in Hyderabad last year and this trend is expected
to continue into this year as well. In the future, apartments in Hyderabad along the IT belt will benefit greatly
from their proximity to attractive office space.
The Impact on Residential Markets
As
commercial development in Hyderabad improves further, it will brighten the
sentiments of residential
projects in Hyderabad. Regions of Hyderabad that are close to
commercial developments are likely to be the biggest beneficiaries from the
absorption of large tracts of office space in Hyderabad. Residential markets such
as Gachibowli, Kondapur, Chandanagar, Kukatpully Madhapur, and Hi-Tech city are
expected to benefit greatly from the rising commercial space absorption in
Hyderabad. The demand for real estate in Hyderabad at the localities mentioned
is expected to grow substantially over the next few years and valuations are
expected to grow beyond the 3,000 to 4,000 rupees per square foot mark.
Post By : Shrikant Sain
For more: propchill.com
Contact number: 7827456456
Email ID: propchill01@gmail.com
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