Bengaluru Office Builders Flock To Hyderabad
Bengaluru, recently declared as one of the world's most dynamic cities in the world is losing a share of its commercial real estate to Hyderabad. Hyderabad, one of the best performing cities when it comes to real estate is gaining the attention of global giants. The office stock in Hyderabad recently doubled from 23 million sq ft in 2008 to 47 million sq ft in 2015. This is primarily because the property rates in Hyderabad are affordable in comparison to Bengaluru and Hyderabad. Regions such as Hitec City and Gachibowli are established marketplaces.
Hyderabad's commercial real estate post formation of the different state of Telangana
The story of Hyderabad has been quite exciting. The city enjoyed the attention of corporates until 2008. But, the political agitation post the formation of Telangana adversely affected the leasing activity. Almost after half a decade, the city is again rejoicing the attention of corporates.
Office Deals That Changed The Story Of Hyderabad
Some of the prominent deals that changed the course of Hyderabad's real estate market are:
- Embassy Office Parks collaborated with Phoenix Group creating an office park based in the region of Gachibowli. The under construction project is expected to be around seven million sq ft.
- Major tenants in the city include US bank Wells Fargo, fund manager Invesco and technology giant, Google.
- Salarpuria Sattva has a portfolio of about 15 million out of which 11 million is under construction.
- Novartis is the pharmaceutical giant serving the main clients.
- Amazon India's largest fulfilment centre is coming up in Kottur.
- The Hyderabad office is one of the technology development centres that have a head count of around 6,500 employees. The company was founded in 2015 and has acquired a space of 7.2-acre plot of land in the IT corridor of Gachibowli.
- Deloitte has also acquired 2.4 million sq ft and Novartis has signed 1.1 million sq ft.
Moreover, companies such as Salarpuria Sattva, DivyaSree Developers, Embassy and RMZ Corp. Some of the prominent IT companies in the world includes Microsoft, Oracle and Uber.
Comparatively low rates is the reason for this shift
The reason for Bengaluru developers moving to Hyderabad is attributed to Hyderabad's good infrastructure. Along with this, the rates in Hyderabad are quite affordable. The rates of units in the IT corridors are almost 15 to 20 per cent less when compared to the ones in Bengaluru. This is supported by the presence of proactive government which ensures that the builders are attracted to the city.
Also Read: Is Hyderabad The New Bengaluru?