The Great Hyderabad Commercial Real Estate Shift
Hyderabad's commercial scene is undergoing a major change. Hitec City, the city's renowned tech hub, has hit full capacity with no Grade A office space available until late 2026. This unusual shortage is pushing big corporations to look at new areas around the city.
Hitec City: The Price of Success
Once hailed as India's Silicon Valley, Hitec City now deals with the results of its own popularity. With 70 million square feet of the city's total 110 million square feet of office space located here, the area has become a victim of its own draw. Companies like Heineken, investing ₹3,000 crore for their Global Capability Center, are now heading to other places due to lack of space.
The Rising Peripheral Zones
Areas like Kokapet, Narsingi, and Tellapur are seeing big growth. These spots offer some great benefits:
- Lower Costs: Rent prices are 10-15% cheaper than the usual rates in Gachibowli
- Better Infrastructure: Infrastructure improvement enhances connectivity through the Outer Ring Road and new Metro lines.
- New Buildings: Development of commercial buildings to go up by 15-20% by the end of 2025
Market Changes and Growth Trends
The city's office space has jumped from 4 million to 12.5 million square feet in the last ten years. Tech firms lead the demand, needing over 65% of all commercial space. This rise is mainly due to Global Capability Centers, which took in 4.5 million square feet in 2021 alone.
Investment Opportunities
For investors and developers, the new areas offer great chances. Lower land costs, modern infrastructure, and close ties to established tech routes make these spots perfect for expanding commercial real estate. The expected 10-20% market growth over the next five years makes these areas top picks for investment.
What Lies Ahead
As Hyderabad keeps growing as India's second-best commercial real estate city after Bengaluru, the move to peripheral areas is set to continue. This trend will likely change the city's commercial map, forming new business areas while keeping the old hubs alive.