Hyderabad: South India walked away with the largest part of the leasing office room at 2020-21 – led by Hyderabad and Bengaluru – with 66% of net absorption coming on the road.
In comparison, West (Mumbai and Pune Metropolitan region) and North (National Capital Region) succeeded in capturing only 21% and 11% of the market, respectively, the latest report showed anarock property consultants, released on Sundays.
While Bengaluru was sealed at least 3.2 million square feet (SFT) -Worth from the main offer, Hyderabad’s leading office transaction stood at 2.3 million SFT – both in Gachibowli – during this period.
Together with Chennai, the southern region absorbed around 14,060,000 SFT office space (small offers and bids including) in the financial year 2020-21, about tripled MMR and Pune 4.5 million SFT.
NCR share is only 2.3 million SFT.
The reason for this request: strong growth from IT / ITES sector, affordable rent and startup explosion in the southern city, according to the report.
“It’s separate, the manufacturing and industrial sectors also encourage demand here,” added Anuj Puri, Chairperson, Anarock Group.
Given the invasion of multinational companies and local companies, it is not surprising that the regional leads in the supply of new offices also with Hyderabad, Bengaluru and Collective Chennai consisting of 63% of national cakes in 2020-21.
In 2017-18, this stock stood at only 40%, the report added.
People in the industry said that investor friendly policies from the state government, coupled with competitive leases also played a key role in pushing Hyderabad to the top of the charts, along with Bengaluru.
In fact, it offers the lowest rental prices between part of Metro – at Rs 57 (on average) per SFT.
In other big cities, the same range between Rs 60 and Rs 125 per SFT.
“The availability of Grade A office in this city, especially in Hyderabad which has a minimum pipe of 20-30,000,000 SFT high-end space coming in the next two years, it is also a factor that works in support,” said an independent realty consultant.