Hyderabad: As the industrial development of this city is picking up speed, the consumption of office spaces has considerably increased in Hyderabad. During July-September quarter, the consumption of office space increased to 9 lakh sq ft compared to 6 lakh sq ft in the quarter 2, says Jones Lang LaSalle’s periodical survey. The renting out of spaces is high in HITECH City and secondary business district submarkets. It has been found that UHG had leased around 94000 sq ft in Phoenix Avance SEZ and TNS India leased about 30000sq ft in the VIT Park.
The existing buildings have low vacancies and the under-construction buildings have pre-commitments thus resulting into the reduction of leasable space. Occupiers of CBD and SBD sub-markets are exiting and moving to HITECH city sub-market. The prime reason of the lessening of leasing space is not due to the invasion of any new occupiers but the expansion of existing corporations.
The increase in demand for office spaces affected the rental demands for residential properties too, according to the market sources. The city witnessed the completion of Krish Sapphire spread across 4.9 lakh sq.ft in the HITECH City sub-market and the 50,000 sq ft Sagar Cements building in the SBD sub-market. Both of the buildings encountered good leasing activity. At the end of third quarter, the city’s office stock level stood at 25.6 million sq ft.
“Commercial property is moving better than the residential segment”, said Yashwant Agarwal, Director, Koncept Ambience Properties Ltd. Unlike earlier, in the last two months, there has been a perceptible shift in trend towards absorption as we sold nearly 2 lakh sq ft commercial property, he added.
The real estate development of Hyderabad looks promising owing to greater commercial and industrial space absorption.