Proactive and prompt Govt support eases businesses to be set up and grow
Pradeep Lala, CEO Embassy Services Pvt Ltd in conversation with Leandra Monteiro explains the growing demand for grade A space in Hyderabad HITEC City. What are some of the company projects coming up in HITEC City? Based on strong business confidence, demand for office space is rising in Hyderabad, led by expansion plans by Information Technology and IT enabled services (IT/ITeS), Banking, Financial sector and Insurance (BFSI) players and Co-working space operators. The major projects in HITEC City are being led by Aurobindo Realty, Salarpuria, RMZ Sky View and RMZ JV with Hetero, Ascendas Park, Meenakshi Group, and K Raheja Mindspace. The reasons for foraying in this region We noticed that currently the FM services are delivered either by IPCs or by local unorganized HK and M&E vendors who service the clients directly. In both these cases there is a gap between the expected requirement and the services offered. This essentially stems from the management perception of either lack of ownership or the dearth of quality initiatives. So we strongly feel that there is a ‘need gap’ that we can address, as the clients today are looking at quality integrated service providers who have the technology, manpower and experience, all put together, to support them. Which are some of the growth hubs in HITEC and why? The main growth hubs are Madhapur, Kondapur, Gachibowli, Nanakramguda and Kokapet. The main factors leading this growth is the availability of Grade “A” space, premium residential development, affordable rentals and strong infrastructure support from the government. What are the infrastructure & policy challenges for HITEC City? Ensuring that the growth of infrastructure matches with the growth of business is a challenge for any government. In the case of Telangana, the government has focused on developing the IT corridor and has established an agency called TSIIC (Telangana State Industrial Infrastructure Corporation). This agency provides single window clearance and support for all initiatives. Safety and Security is always a challenge faced by the policy makers. Here, the Govt of Telangana has accelerated resolution of issues concerning the Software Industry, by setting up SCSC – Society for Cyberabad Security Council. This is a first of its kind in the country to take care the safety of IT Corridors and all companies are members of this Society. So we see proactive and prompt Govt support here which eases businesses to be set up and grow. How do you foresee the real estate growth in this area in the next 5 years? Office space absorption has gone up to 5.8 million square feet in the first half of 2019, from 1.5 million sq ft in the same period of 2018. This has pushed Hyderabad’s share in the overall office space market to around 27%, from 8% in the same period last year. All major realty reports also indicate that Hyderabad will be in the top of Commercial space absorption in the country and the net absorption is expected to breach 11 million sq ft by end-2019. Due to a stable government, official proactive support and affordable rentals, Hyderabad has more potential than many of the other cities in India. Thus the organic growth of existing big companies as well as new companies opening up, will continue to see an upward trend, leading to overall optimism for the foreseeable future.
Tags : Interviews