Hyderabad’s extended IT corridor sees increase in office space leasing

The India Office MarketView Quarter 4 2018 report by real estate firm CBRE released on Monday, reported a rise in office space leasing activity in Hyderabad, which basically means the area of real estate being take on lease by various private companies to set up their offices is increasing in the city. However, it is not the traditional IT corridor areas like Madhapur, Kondapur, Hitech city or Raidurgam where more and more companies are setting up their offices but in the ‘extended IT corridor areas’ as the report puts it, like Nanakramguda, Manikonda and Gachibowli. It has been observed that the leasing activity has increased in these extended IT corridor areas, whereas it has declined in the traditional IT corridor areas, the main reason being lack of any new property additions in the traditional IT corridor areas, indicating a saturation. However, the rental value of the property is still high in the traditional IT areas where it increased by 3.1 percent on a year-on-year basis, unlike the 1.8 percent in the extended IT corridor areas.