Hyderabad to sport 150 million sq ft office space by 2025? – ET RealEstate

HYDERABAD: The city’s office space supply could well cross the 150 million square feet (sft)-mark by 2025. At least so it seems from industry reports, which indicate that Hyderabad, already sitting pretty on a supply of 70 million sft, is likely to add another 80-odd million sft to its kitty over the next four to five years.

And almost all this stock is planned along the Hi-Tec City-Madhapur-Financial District-Kokapet belt, which defines Hyderabad western corridor. Incidentally, over past 12 months, the city’s vacancy rates more than doubled — jumping from 4 million sft in 2020 (Q2) to 10 million sft in 2021 (Q2).

Realty consultants fear such huge supplies in the offing can lead to a demand-supply mismatch — and even impact rentals — if not rolled out mindfully. “On a cautious note, developers need to be wary of down cycles and control the developments judiciously to balance the demand-supply dynamics,” said Veera Babu, managing director, Cushman & Wakefield (Hyderabad), while adding that this robust outlook is rooted in Hyderabad’s ‘stellar performance over the last few years’.

The city that had hit 10 million sft in office leasing by 2019 — falling only behind Bengaluru — was expected to have grown to 15 million sft by now, had Covid-19 not thrown it off the tracks.
Hyderabad to sport 150 million sq ft office space by 2025?While admitting to a chance of Hyderabad consistently reporting a 15% to 20% vacancy rate, major developers say there is enough activity happening in the city for the office supply to be absorbed. “Also, this supply will come up in a staggered manner. Even if developers have 10 to 15 million sft in the pipeline, they will build only small bits — say 2 to 3 million sft — depending on the demand,” said an official of a major realty firm.

Seconding it, Mahesh Khaitan, director of Salarpuria Sattva Group, pointed out how Hyderabad’s demand — backed by proactive government policies — is also expected to see a 5% to 10% year-on-year growth. “Maybe the ride will be rough till Q2 of 2022, but after that, we are certain to see this rise,” he said.



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My Home Constructions to invest $2 billion in commercial project in Hyderabad – ET RealEstate

Hyderabad-based My Home Constructions, a premium real estate residential and builder, plans to invest $2 bn to develop India’s largest commercial project.

The firm plans to develop a 25 mn sqft of office project in the financial district of Hyderabad apart from expanding its residential footprint.

“The entire project will be funded through internal accruals over eight years. There will be an economic impact on the business, but the market will rebound,” said J Shyam Rao, managing director of My Home.

The first phase of this extensive project covering 8mn million sq. ft. at the financial district of Hyderabad, the hub of IT & ITES companies, will start construction once the lockdown is lifted.

The Rs 6,000-crore My Home Group is a diversified group with interests in construction, cement, education, and other sectors has also lined up 14mn sqft of residential projects in Hyderabad. Last year, My Home Constructions closed sales of more than 4.5 million sq ft and Rs 3,200 crore revenues.

In 2017, MyHome clinched a partnership with RMZ Corp. to develop premium commercial office spaces in the city with an investment of over $ 1 billion.
Spread across 10 million sq. ft., the office space project is jointly managed and developed by the two firms.

In Hyderabad, new launches in Q1 2021 decreased marginally by 17% q-o-q. Nevertheless, the city has still recorded a substantial volume of quarterly launches, which continue to remain at levels higher than those witnessed in the first three quarters of 2020. With new launches concentrated in the Kondapur, Miyapur and Nallagandla regions, Western suburbs continued to account for a majority share in new launches.

The positive traction witnessed in sales in H2 2020 continued in the first quarter of this year. Sales of residential units recorded a growth of 4%. But sales volume in the city is yet to reach the peak levels witnessed in 2019. As the city has limited inventory in the ready-to-move-in category, homebuyers have shown interest in recently launched projects by prominent developers.



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Office space leasing touch 10.9 million sq ft in top six cities: Report – ET RealEstate

NEW DELHI: Leasing activity across six major cities in India during the first half of 2021 dragged to a six-year low, according to a recent report by Savills India, an international real estate advisory firm.

In the January-June 2021 period, office absorption in six major cities stood at approximately 10.9 million sq ft, down by 38% from the corresponding months a year ago.

Bengaluru, Delhi-NCR and Mumbai constituted around 69% of the total leasing activity in H1 2021 across top cities of the country.

Bengaluru continued to lead with 4.1 million sq ft of leasing activity representing 37% share in H1 2021 followed by Delhi-NCR which witnessed leasing activity of 2.0 million sq ft recording a 37% year-on-year decline.

While Mumbai and Hyderabad shared third place with approximately 1.4 million sq ft absorption, the annual decline in leasing was sharper for Hyderabad at 46% compared to 39% for Mumbai.

Pune recorded approximately 0.9 million sq ft. leasing while, Chennai saw leasing activity of 1.1 million sq ft.

“The second wave of the pandemic has forced most organisations to reinstate their work from home policy once again dampening the overall sentiment of the office market. We believe this to be only a temporary pause, as amid the crisis, we did continue to see large lease deals being signed in key markets, symbolic of occupiers’ plans to return to office,” said Anurag Mathur, CEO, Savills India.

Despite the ongoing pandemic, the technology (IT) occupiers continue to lead the demand followed by BFSI segment. While the IT sector has increased absorption and holds a 51% of the share, their combined share of approximately 63% is same as in H1 2020.

The new supply rose by 4% at 18.0 million sq ft in H1 2021 from the year-ago period.

Bengaluru has recorded the highest infusion of new supply constituting a 36% share, followed by Hyderabad and Delhi-NCR at 28% and 22% shares, respectively.

In H1 2021, the overall vacancy levels increased to 16.2% at the end of June, as supply addition exceeded the pace of leasing activity. Prime locations with limited availabilities saw stable rents while a few micro-markets have seen a sharper decline as landlords exhibited flexibility to attract new clients.



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About 410 families in Hyderabad get two-bedroom houses – ET RealEstate

HYDERABAD: It was a memorable moment for 410 families, who received the keys for the new two-bedroom homes built under Telangana government’s Dignity Housing Scheme on Thursday.

These housing units built with Rs 35.15 crore are located in Secunderabad and Musheerabad assembly constituencies. The housing societies built in Musheerabad are Sai Charan 2BHK Housing Colony comprising 108 flats and T Anjaiah Nagar 2BHK Housing Colony with 35 flats.

The houses will be inaugurated by Animal Husbandry minister Talasani Srinivas Yadav.

While the SC Bose Nagar 2BHK Housing Colony comprises 60 flats, the Chilkalguda Dhobighat 2BHK Colony has 207 flats.

The state government has also built shops in these societies so that the revenue generated from them could be utilised for maintaining the lifts. Also provided here are amenities such as CC Roads, sewerage connection, sumps to store drinking water and electricity.

Hyderabad city mayor Gadwal Vijayalakshmi, MLC Surabhi Vani Devi and other elected representatives as well as GHMC officials participated in the inaugural function.

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