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Hyderabad records 172% rise in real estate sector in 5 yrs & major growth in IT sector

Despite the difficult times prevailing due to the pandemic, the capital city of Telangana Hyderabad has managed to record a 172% growth in the business for the commercial real estate sector. This rate is measured over a comparable period of 5 years.

The report submitted by Knight Frank India has the title “WFH, #WorkFromHyderabad”, referring to the tremendous growth potential the city holds and has continued to prove over the time in the areas of the commercial market. As 2020 has shown its disastrous effects in the majority of the fields in the world, shaking up economies, Hyderabad has been recorded as one of the very few cities in India to see a positive rental growth rate of 2% YoY in the third quarter of this year.

Rents of commercial lands, buildings, etc., did not go down even in covid times. Prices for the residential home spaces have rather increased by 5.3% CAGR in a span of 10 years.

Bengaluru and Hyderabad form the only two metropolitan cities to not register a decrease in the real estate as the rest of the country is facing difficulties due to the reduced sales.

The report was published by Knight Frank India during the celebration for the formation of its new office in India. It further mentions that Hyderabad managed to go up from the 6th spot in 2014 to the 2nd spot in 2019 in sectors governing the annual demands of office spaces aka the corporate activity.

The RGIV of Hyderabad too showed its share of growth as it contributed 6.4% of the country’s passenger traffic in the years 2019-2020 compared to the 5.5% it offered in 2014-2015.

Moreover, since 2014, the year of Telangana’s formation, its real GDP has gone up to Rs.6.63 trillion in 2019-20, launching from Rs.416 trillion recorded in 2014. Its CAGR too is 8.08% that is surprisingly much higher than the national real GDP CAGR- 5.7%.

The booster in place for paving the growth of Telangana has proved to be the tertiary sector, more so by the IT industry. The state’s IT exports gave rise to Rs.1.25 trillion in revenue for 2019-20, recording an 18% increase compared to the Rs.1.9 trillion of 2018-19.  Hyderabad stands second in terms of offering the revenue to the country from the IT sector while also acting as the home for major tech giants of the world, including Amazon, Facebook, Microsoft and Google.

The research report further brought light on the two sectors of the real estate in Hyderabad that are gaining momentum and seeing an increase in demand given the pandemic challenges- data centre and warehouses. These are immensely beneficial during these times as the business has shifted to an –eCommerce basis requiring the zero-contact services to be able to abide by the social distancing rules. Thus, businesses need logistic stations and warehouses to secure their supplies.

Being one of the few states to offer independent data centres since 2016, Telangana has gathered investments going up to a whopping Rs.25,000 crore for projects of the data centres. After its first data centre of Chennai, Flipkart, the e-commerce giant setup its second one in Hyderabad to give aid to its core actions.

KTR, the IT and Industry Minister of Telangana recently executed the ribbon-cutting ceremony for a new office in Dallas Centre of Knowledge City that is situated in the IT hub.

The minister highlighted the transformation of Hyderabad into the latest tech hub of the country within the past 6 years. The field has also garnered growth in other sectors as it now showcases industries of primary production and the related products’ development services as well from being just a backend operations service provider.

The Managing Director and chairman of Knight Frank India, ShishirBaijal, exclaimed that the state government has accelerated its concentration on sectors of life sciences and pharmaceuticals, electronics, textiles and food processing to be able to build a better network of economic growth.

Since the past 4 years, the state has collected investments valued at Rs.10,000crore for the life sciences field. Telangana government has also announced specific policies under the Life Sciences Policy of Telangana to aid for the enhancement of the industry. Matched with this, are several projects to boost the growth like the Hyderabad Pharma City, Genome Valley 2.0and Medical Devices Park in Sultanpur.

The branch director of the author of the report, Samson Arthur voiced the city’s high ranking in the sectors of business and living as it is evolving through modern business groups. The city is also proving to be an exceptional medium for building new industrial ecosystems given its record of effective IT industries.