From bagging the title of the best city in terms of living standards to the wide assortment of flavors, the city of Hyderabad has much to offer for every cadre of person. From students who are seeking instant coaching classes to get their software and hardware skills in shape to professionals who are looking to advance their career, Hyderabad can be a place that caters to every aspiration in a beautiful way. Businesses also target Hyderabad for having a growing home base. As per KT Rama Rao, Telangana IT and Industries Minister, Hyderabad attracts investment flow of around INR 2, 67,000 crore investment in developing its urban infrastructure.
While being great for businesses, Hyderabad also becomes a prime location for retail investors. Specifically, in the CRE (Commercial Real Estate) segment. In 2019, as per JLL, the city achieved the 2nd highest absorption of office space in India, which was about 10.5 million sft. It has been ranked the best city to live in India for the fourth year in a row as per Mercer’s Quality of Living Index 2019. With a stable and proactive government since 2014, Hyderabad has ranked second among 17 major cities in terms of ease of doing business. All this and more have steadily contributed to the growth of Hyderabad as a hub for prime CRE investment.
Concerning commercial real estate, the sector of premium office spaces has almost doubled in size over the past decade. Hyderabad is close at the heels of Bangalore in terms of the share of Grade-A office spaces.
Commercial real estate in Hyderabad has seen a growth of nearly 172% in the last five years and is one of the fastest-growing flex space markets with 4.5 million sft available space. Owing to the ease of doing business and rapid growth of infrastructure, Hyderabad accounts for a sixth of all the Grade-A office spaces in the country. In 2019, as mentioned earlier, Hyderabad accounted for 22.5% of India’s total office space absorption. With about 106 million sft of total office stock, Hyderabad has also seen private equity investments worth close to USD 1.35 billion. The presence of a strong talent pool and supportive government policies seem to aid in the growth of the city as a prime location for CRE investments.
Some of the best companies in the world call Hyderabad their home base for operating in India. The largest campus of Amazon is present near the Financial District. While the headquarters of Amazon Development Center stays in Bangalore, Hyderabad houses its largest footprint in India. The biggest campus of Google outside the US is in Hyderabad again. Apart from these tech giants, the top ten MNCs in Hyderabad include names like Bayer Bio Science, Corteva Agriscience (Dupont), Blue Yonder, Mars International (Pedigree) among others.
Apart from the booming IT industry that is changing its focus from process outsourcing to captive production and product development, Hyderabad also contributes to nearly 35% of the country’s pharmaceutical production. The Genome Valley, a brainchild of N Chandrababu Naidu, is a high-tech business district in Hyderabad spread across 600 square kilometers that contributes to 33% of global COVID vaccines. Recently, envoys of around 80 countries paid a visit to understand the processes involved and the progress on the development. Biological E and Bharat Biotech based in the Genome Valley are the ones leading the process of the vaccine development.
Hyderabad is definitely a market worth considering if one is looking at a stable investment option with high returns. If you are new to the entire real estate investment scene, maybe drop us a line here. Using Strata’s fractional ownership model, the entire complication of investing in commercial real estate is reduced to nothing. Even during this pandemic period, CREs are the safest bet, while companies are restructuring their work patterns for a healthier one. To know more about the assets that Strata deals in, please visit us at www.strataprop.com.