Western Hyderabad to add up to 3 mn sft office space in next 6 months

Presence of global IT and financial institutions helped average rentals in the region rise 12% in last one year

The western part of Hyderabad is expected to see a net addition of three million sft office space in the next six months. As usual, a majority of this demand will be absorbed by mid-size to large corporations, including IT companies and private businesses among others.

What makes it quite attractive is, “The rental price here is around Rs 40 per month per sft, which is 10-12 per cent lower compared with similar office market in Bengaluru and Chennai,” said Trivita Roy, assistant vice president, Jones Lang LaSalle (JLL).

Meanwhile, the average rise in rentals here was around 12 per cent in the last one year. But in the last 3-4 months there hasn’t been any rise, Roy said. However, she expects greater clarity after the elections next year.

In terms of residential demand here, she said the region was among the preferred buy as 40 per cent of the city’s workforce moves daily from the eastern parts, and added, buying a home here, therefore, carried a good value for them. When compared with other avenues in the city, residential prices here would remain relatively high, she added.

The property buzz here is mostly attributed to the presence of global IT and financial institutions, wide roads and  hassle-free drive to the international airport. Adding to this, the Centre recently gave its nod for setting up a Rs 200,000 crore IT investment region (ITIR), which is expected to further fuel the property market growth in the western parts (extending from Kukatpally- Rajendra Nagar).

Echoing similar opinion, S Ram Reddy, state  president of Confederation of Real Estate Developers Association of India (Credai), said there had been a steady 20 per cent price rise in the completed gateway projects and villas in the western side.

Next to the west, the southern locations (Shamshabad and Srisailam Road) are also witnessing good enquiries from buyers.

Earlier, during the launch of SMR Holdings’ satellite township launch, Reddy said the property prices in Hyderabad have reached rock bottom and there would not be any further decline going ahead.

On average every year, Hyderabad has been adding 20,000-25,000 residential units. Historically, it has predominantly been an end-user market, helping developers insulate from property bubbles.