Commercial Real Estate Boom: Why Hyderabad is the City to Look Out For

Hyderabad is rapidly emerging as a major hub for commercial real estate in India. As per a report by Finacial Express, in 2023, Hyderabad ranked second in net office absorption, capturing a 21% share with 4.03 million square feet absorbed.  Additionally, the city contributed over 8.2 million square feet of new office space, representing 34% of the total new office space across India’s seven major markets. 

As a business looking to establish or expand your presence, here are a few reasons why you should consider Hyderabad as the ideal location. 

Growing Corporate Jobs

Hyderabad has become a magnet for multinational corporations and domestic companies alike. The city’s robust IT and BPM sectors are expanding, creating a high demand for premium office space for rent. Companies are increasingly setting up their operations in Hyderabad due to its skilled workforce, cost-effective business environment, and supportive government policies. The influx of these corporations has led to a surge in demand for Grade A office spaces, contributing significantly to the commercial real estate boom.

New Projects and Faster Completions

The commercial real estate landscape in Hyderabad is marked by an impressive rollout of new projects and improving completion rates. Developers are investing heavily in constructing modern office spaces to cater to the growing demand. The city’s strategic location, combined with its reputation as an IT and business hub, attracts developers and investors. This proactive approach has resulted in a steady supply of high-quality office spaces, ensuring that demand is met promptly.

Better Infrastructure

Infrastructure development is a cornerstone of Hyderabad’s commercial real estate success. The city boasts excellent connectivity with a well-developed road network, a metro rail system, and an international airport. The Hyderabad Metro Rail, in particular, has significantly improved accessibility, making it easier for businesses to set up operations. Additionally, ongoing infrastructure projects like the Hyderabad Pharma City and Information Technology Investment Region (ITIR) are expected to further boost the city’s appeal to investors and businesses. 

Focus on Tech and Sustainability

The real estate sector in Hyderabad is witnessing a paradigm shift towards advanced technology and sustainability. Developers like Indian City Properties are incorporating smart building technologies, energy-efficient designs, and green building practices into their projects. This shift not only enhances the appeal of commercial properties but also aligns with the growing demand for sustainable and environmentally friendly workplaces. The adoption of advanced technology is evident in the increasing number of LEED-certified buildings in the city, showcasing Hyderabad’s commitment to sustainable development. ICP 800 Jubilee Hyderabad is one the notable high-end commercial addresses that has gained esteemed LEEDS Gold Certification from IGBC. The property is an ideal premium office space for rent in Hyderabad for organisations that wish to incorporate the best of sustainability and new-age amenities into their operations.

Supportive Government Policies

The Telangana state government has played a pivotal role in driving the commercial real estate boom in Hyderabad as a. Proactive policies and initiatives have created a conducive environment for businesses and investors. The state’s single-window clearance system, ease of doing business reforms, and investment-friendly policies have significantly streamlined the approval process for real estate projects. Additionally, incentives for IT and BPM companies, such as tax breaks and subsidies, have attracted a plethora of businesses to the city.

The state government’s focus on creating an investor-friendly environment is reflected in its initiatives to promote innovation and technology. The establishment of T-Hub, one of India’s largest startup incubators, has positioned Hyderabad as a leading innovation hub, further boosting the demand for commercial real estate. 

With continued support from the government and a strategic focus on sustainable development, Hyderabad is well-positioned to maintain its upward trajectory and emerge as a leading destination for commercial real estate investments.