Remarkable turnaround in Hyderabad realty
Hyderabad: Various policies of the State government, apart from aiding in the overall development of the State, have led to a remarkable turnaround in Hyderabad’s real estate growth over the last few years.
Hyderabad is one of the most sought-after office destinations in the country with over 104 million sq ft of office stock as of September 2022.
The rapid growth of the office sector further triggered the need for residential developments, with the city’s inventory crossing 3.3 lakh apartment units as of September 2022, said commercial real estate services player CBRE in its latest report, ‘Telangana-the land of rising investments’. The report highlights the Telangana government’s policies that have impacted real estate in Telangana and the trends across all real estate segments in the State.
The report further said that increased investments from industrial and manufacturing players led to the growth of the logistics sector in the city. The warehousing stock in the city touched 23 million sft by September. With the entry and expansion of global and domestic brands, Hyderabad has also witnessed heightened demand for organised retail space over recent years. This caused the total mall stock to cross 11 million sft with 21 developments as of September this year.
CBRE further said the business environment was expected to continue to improve in the State, led by a stable political dispensation, focused policy initiatives, widening infrastructure bases, positive stakeholder sentiments, and availability of a large talent pool. The high-quality institutional supply in the IT corridors (Hitec City, Madhapur, Kondapur, Gachibowli, Raidurg, Nanakramguda, and surrounding areas) would continue to draw flight-to-quality leasing. CBRE said the use of technology would continue to boost the creation of smarter developments in the city as well as encourage ‘return to office’ sentiments.
In the residential segment, the momentum would continue in new launches and sales. However, delivery timelines may get impacted. Mid and high-end properties will continue to drive the demand. The focus will be on larger units, it said adding that developers would consider smart warehouses. Global and domestic brands would continue to diversify their store formats and functions.
Telangana accounts for 5% of India’s GDP. In the past five years, the State’s GSDP achieved a CAGR of 11.4 % (at current prices), which was 2.9% higher than India’s growth during the same period. This was a result of the adoption of global and domestic business-focused policies almost immediately after the State’s formation in 2014.
