Hyderabad Commercial Realty 172% Growth in Last 5 Years
According to a report by Knight Frank India, Hyderabad city has seen a record growth of 172% in the commercial real estate market between 2014 to 2019. According to the research report titled 'WFH, #WorkfromHyderabad', in terms of commercial market, Hyderabad is one of the few cities that recorded p
Published -
Nov 7, 2020 5:43 AM
According to a report by Knight Frank India, Hyderabad city has seen a record growth of 172% in the commercial real estate market between 2014 to 2019. According to the research report titled 'WFH, #WorkfromHyderabad', in terms of commercial market, Hyderabad is one of the few cities that recorded positive rental growth of 2% year-on-year (YoY) in Q3 2020. Residential prices have grown by a significant 5.3% Compounded Annual Growth Rate (CAGR) in 10 years, and even during the present COVID-19 challenge, rents continue to remain steady. Hyderabad is among the only two metro cities, the other being Bengaluru, that have not seen a fall in residential prices despite the ensuing market uncertainties and low sales, says the report released in Hyderabad. According to the report, Hyderabad witnessed a remarkable growth in corporate activity over the last five years and jumped from a rank of sixth in 2014 to second in 2019 in terms of annual office space demand across key cities in the country. Hyderabad Airport's share of passenger traffic handled in the country has increased from 5.5% in 2014-15 to 6.4% in 2019-20. Since the formation of the state, Telangana's real Gross Domestic Product (GDP) has significantly grown to Rs 6.63 trillion in 2019-2020 from Rs 4.16 trillion in 2014 with a CAGR of 8.08% which is considerably higher than the national real GDP CAGR of 5.7% for the same period. The driver of the state's economic growth has been the tertiary sector (services sector) dominated by the Information Technology (IT) services. Telangana IT/ITeS exports contributed revenue of Rs 1.25 trillion in the year 2019-2020, with 18% annual growth against Rs 1.9 trillion in 2018-19. The city is the second-largest contributor to the revenue from IT exports in the country and is home to global bigwigs like Google, Amazon, Microsoft, and Facebook. The report also highlighted that, as the conventional real estate asset classes struggle to get back on their feet on account of the ongoing pandemic, two new asset classes are seeing a sudden spurt in demand - data centres and warehouses. The forced shift to e-commerce to enable contactless business and to fulfil physical distancing norms has created a need for more warehouses and logistic centres across the country. Hyderabad, being the distribution hub in Telangana, is also seeing increased traction in the warehousing segment. Telangana is among the very few states in India to have an independent data centres policy, as early as 2016. The state has already garnered an investment of Rs 25,000 crore for data centre mega projects. Recently, Flipkart opened its data centre in Hyderabad, second after Chennai, to support its core operations. Telangana Industry and Information Technology Minister K T Rama Rao inaugurated the new office in Dallas Centre, Knowledge City, located in the premier IT-Hub.
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