Hyderabad Witnessing a Massive Surge in Office Space Deals
The COVID-19 pandemic had slowed down business activity across the country in an unprecedented manner. This included the realty sector in the charming city of Hyderabad too which has been witnessing an IT-driven demand for real estate since 2019. Subsequent to the March 2020 lockdown, there was a mass exodus of migrant labour force resulting in disruption in construction. The news of vaccines against COVID-19 has however brought cheer and spurred resumption of realty transactions in Hyderabad from the fourth quarter of 2020.
According to a report by global real estate consultant, Knight Frank, Hyderabad has been garnering more than its fair share of attention in the realty market and a greater demand for rental office spaces. From 2.2 million square feet in Q1, there has been a jump in transactions to 3.3 million square feet, showing a 640% leap in rental transactions during Q4 2020. Q2 and Q3 meanwhile showed only nominal transactions. This represents a significant revival in the office space market. It should be noted that the rate of construction turnover was however higher in H1 (>3.3) and H2 (>4.6) than that rented out (H1-2.2 and H2 -3.3).
Interestingly, Hyderabad’s ranking in office space transactions also bounced from sixth place in 2015 to second place in 2019 with a record transaction of 12.8 million square feet. The city also recorded the second highest supply in 2020 with over 8.7 million square feet of new rental office spaces. Of this value, 9.4% office spaces are still vacant, an increase by 2.4% from H2 in 2019.
While the office market has come down substantially from 112 million square feet in H2 2019 to 39 in H2 2020 due to the pandemic, there has been a surge in deal sizes by 22% (from 79,865 square feet to 97,554 square feet). Around 45% of transactions in H2 2020 are large transactions of 50,000 square feet and above, indicating a jump in the average deal size and requirements by office space renters.
Commercial space developers are further attracting renters by offering bundled services which also include management and maintenance of these rental office spaces. GAR Infobahn have an immense integrated business park project in Kokapet, Hyderabad, featuring 23 impeccably-designed towers with 25 floors each of scalable office spaces. This IT Park, with SEZ and Non-SEZ facilities, offers 10 million square feet of grade A floor spaces. There is ample parking area as well with more than a kilometre of road frontage. Furthermore, this IT park is managed flawlessly and follows all COVID-19 protocols.
To know more about us, visit our website www.garinfobahn.com .
