Realty Bytes: Office Demand In Hyderabad Witnesses 109% Y-O-Y Growth In 2016: CBRE

Office Growth, Coupled with Robust Infrastructure Development and Competitive Pricing, Propelling Hyderabad’s Housing Market

Hyderabad, April 14, 2017: CBRE South Asia Pvt. Ltd, India’s leading global real estate consulting firm noted that, in 2016, Hyderabad witnessed strong office leasing, registering an 109% y-o-y growth during the year. In the January to March 2017 quarter, the city witnessed the uptake of more than 1.3 mn sq.ft. of office space. This growth in office leasing activity, coupled with robust infrastructure development and competitive pricing, positions Hyderabad as one of the most affordable residential markets for buyers in the region.

With the lowest office rentals across top markets in Southern India, corporates are increasingly looking at this market while planning their expansion strategies in the region.  During the past few years, the continuous growth of the IT sector in the city has had a cascading effect on the housing market in corresponding hubs. The residential activity in North Hyderabad is driven by presence of industries such as pharmaceutical, bio-tech, electronics, etc.  

Recognizing the emerging prominence of Hyderabad as a real estate hub, especially for the residential segment, CBRE organized the 7th edition of CBRE PropFair 2017 in the city. Held at the HiTex Exhibition Center, this is the first time that the event has been organized here. The exhibition was inaugurated by Anshuman Magazine, Chairman, India and South East Asia, CBRE, along with some of the city’s top residential real estate developers. Ranked 144 in the Quality of Living Index, Hyderabad real estate is both end user and investment led, with the city’s housing segment witnessing positive traction in the recent past.

Speaking at the inaugural function, Mr. Anshuman Magazine, Chairman, India and South East Asia for CBRE said, “Strong political stability, coupled with the city’s inherent strengths, including its status as a prominent IT hub, a robust institutional base, supportive government policies and large infrastructure initiatives, are augmenting Hyderabad’s real estate development. This, coupled with the city’s strong office leasing activity in the recent past, is having a positive impact on the residential market. Going forward, we expect the city’s residential market to further pick up.”

 Factors contributing to Hyderabad’s growing prominence as a real estate hub:

  •   stablished technology center 
  •   Well planned existing and upcoming infrastructure
  •   Presence of quality educational institutions
  •   Growth of the city’s retail real estate segment
  •   Proactive government policies
  •   Availability of skilled talent

Speaking about the future potential of the city, Mr. AS Sivaramakrishnan, Head, Residential Services – India for CBRE South Asia Pvt. Ltd. said, “Unlike other cities in southern India where capital values for residential real estate have reached the top level, Hyderabad still has a lot of room to grow. The governments concerted efforts to improve physical and social infrastructure in the state are making it an attractive option for business development. This is expected to have a positive effect on the city’s housing market in the near future.”

On the first day itself, the event saw more than 5000 footfalls. With over 200 projects being showcase by the top 60 developers in the city, CBRE PropFair, is expected to witness more than 15,000 visitors during the three-day event.

Going forward, the increase in commercial activity, coupled with the stable political environment, relatively lower pricing for residential properties, as compared to other tier 1 cities, lower land costs and improved social and physical infrastructure is expected to support the growth of the housing market in the city.

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Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
 

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.​

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Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
 

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.​

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