Hyderabad's Western Zone to See Office Space Boom
Hyderabad's western region is anticipated to experience significant growth in office space, with an expected addition of three million square feet in the coming months. This substantial increase in inventory is projected to be largely absorbed by mid-sized and large corporations.
Competitive Rental Rates Attract Businesses
The current rental rate in the western part of Hyderabad stands at Rs 40 per square foot per month. This rate offers a competitive advantage, being 12-15% lower than comparable commercial markets in Bangalore and Chennai. While rental rates in this area rose by an average of 11% last year, the past 3-6 months have witnessed stable pricing. However, market observers predict potential price increases following the upcoming General Elections next year.
Housing Demand Driven by Workforce
The western region has also emerged as a preferred residential destination, with 40% of the workforce commuting from the eastern parts of Hyderabad. Purchasing a home in this area presents a valuable proposition for these commuters. Property values in the western region currently remain comparatively lower than other areas within the city.
Infrastructure and Investment Drive Growth
Several factors contribute to the growing interest in Hyderabad's western region. The presence of global IT and financial institutions, along with well-developed and easily navigable roads and direct connectivity to the international airport, serves as a significant draw. In a major boost for the region, the Central Government has also granted approval for a Rs 200,000 crore IT Investment Region. It is widely anticipated that this substantial investment will further drive property price appreciation within the area and the western part of Hyderabad might soon see investment in related sectors like warehousing.
Price Appreciation and Future Outlook
Recent trends reveal a steady 25% price increase for completed projects and villas in the western region. The southern part of Hyderabad is similarly exhibiting promising investment potential. On average, Hyderabad consistently adds 22,000 to 26,000 housing units annually to accommodate its consistently rising population from various parts of the country.