Dominance of engineering industries along with trading companies was predominantly visible in the Hyderabad’s commercial market few years back, but over the past few decades the city has witnessed significant shift of industries highly influenced by the IT boom in the country. Global IT giants such as Google, IBM, Accenture, HP, GE etc have their set up in the city, and they have a strong influence on the Hyderabad commercial real estate market. The commercial skyline of the city predominantly comprises IT companies and IT parks which flaunts their infrastructure and rapid growth on the graph of the commercial real estate index.The commercial real estate of Hyderabad is dominated by the IT/ITeS sector occupying almost 78 per cent of the stock, while BFSI sector shares 4 per cent stock and manufacturing sector shares 6 per cent of the overall stock. Recently, Hyderabad has been noted as the most affordable commercial real estate market in the country, it has been even ranked below the new comer IT cities like Pune. The presence of service sector companies in Hyderabad is also observed decent influence on the market. Apart from root industries, new industries like consulting and media also observed decent growth in the Hyderabad real estate.The overall Hyderabad business market is observed is classified according to the demographics, locations like Begumpet, Ameerpet, Somajiguda, Banjara Hills and Jubilee Hills form the CBD and Off-CBD office market. Key micro markets such as HITEC city, Madhapur which prominently influence the office space in the city forming Suburban Business District (SBD). Peripheral Business District (PWD) is formed by combining areas like Gachibowli and PBD is divided in two parts with PBD-west and PBD-east.Current ScenarioThe total office space stock available in the Hyderabad is 55.9 million square feet at current position out of which about 44.8 million square feet of office space is occupied with vacancy of 18 per cent across the city. The vacancy level of the city areas observed rise in the count since 2011, it has increased by about 5 per cent from 13 per cent. The main reason behind the sustained real estate market in the city due to elements which are helping Hyderabad to nurture growth of the office market and these elements include affordability of the office space, significant amount of availability of properties. Although the city has suffered from mixed market sentiments due to the epitome of the issue of bifurcation of the Andhra Pradesh state, but it has substantially maintained its image of being the most affordable office market in the country.After the decision of bifurcation, Hyderabad office market witnessed a contraction in the absorption levels in the 2013 as regional political issues highly impacted on the commercial sector and it has been further helped by unfavorable global economic conditions. Major giants majorly observed consolidating their existing office spaces to enhance their efficiency by reducing the costs for the office spaces.In 2013, Hyderabad office market lost its sheen as the absorption levels reached lower tracks by approximately 9 per cent compared to the absorptions in 2012 and further this was coupled with 6.7 millions of virgin office supply in the city. The city observed sudden spike in the vacancy levels, but it certainly did not affect the real estate, especially the rental properties and rental values and they have observed stable transactions throughout the year.Sector-wise Real Estate AnalysisIT/ITeS Sector
- Primary demand driver of the Hyderabad office market, hence it had a strong influence over commercial real estate of Hyderabad
- IT/ITeS sector accounted for approximately 2.84 million square feet of absorption in 2013
- IT sector has been the backbone to the commercial real estate of Hyderabad, and has always shared the maximum amount in absorption.
- IT giants like Cognizant, Google and Amazon too up the large amount of office space in 2013
- Cognizant leased largest section in Raheja Mindspace at HITEC city which involved leasing of 0.35 million square feet space
Manufacturing Sector
- Manufacturing sector accounted for 0.23 million square feet of absorption in 2013, which was pretty declined compared to the absorption in 2012
- Suburban business district observed significant amount of transaction from manufacturing sector, which included lease inked by Aurobindo Pharma, a pharmaceutical giant for about 65000 square feet of office space and it was the largest manufacturing deal of 2013.
- Government is trying very hard to improve the manufacturing industry’s share in the country’s GDP; hence the share of manufacturing will remain fluctuating for next few years.
BFSI sector
- After the IT/ITeS sector, BFSI is the only sector which has the potential to grow exponentially in the coming years.
- BFSI sector is the second most important sector in the commercial real estate of Hyderabad; it accounted for 0.14 million square feet of office space transactions.
- Andhra Bank and HDFC were the most active companies in the BFSI sector during 2013
Apart from these three basic and prominent industries, Hyderabad office market also observed significant transactions from other service industries which was accounted for 0.52 million square feet in 2013. About 89 per cent of this other service sector transactions were observed in the SBD, which included transactions involving firms like Deloitte, Halcrow and Ernst & Young and telecom service.IT/ITeS industry has been the main demand driver in Hyderabad city, and it will remain the primary growth factor for the commercial real estate of Hyderabad. Despite the fact the city has witnessed a mixture of sentiments and political issues creating confusions amongst commercial giants, it has shown stable transactional activities in the past year. Although there were some glitches in the absorption in the first quarter of 2013, but the market took up decent growth rate in the later quarters resulting into a equalized transactional reaction in the office market. Vacancy levels has increased as significant new supply was added in the city, and it will remain same for next few years as incoming supply keep on coming in the city.займ на карту без отказов круглосуточновзять кредит онлайн