In recent years, the trend of investing and leasing in the commercial market has witnessed a huge jump across major Tier-1 cities. However, Bengaluru has always led this market because of the presence of many MNCs, IT companies and startup and coworking spaces. But, according to recently released data, it has been revealed that Hyderabad has outpaced the ‘IT city’ in the commercial space leasing activity in the first quarter of 2019.
The report said that Hyderabad has witnessed 3.5 million sq ft of office space leasing in Q1 2019 as compared to 1.1 million sq ft in 2018. On the other hand, Bengaluru has seen a leasing activity of 2.5 million sq ft of space.
Besides this, the report has also predicted that the city is going to complete 33 million sq ft of commercial space in between 2018-2021 which will be much higher than the Silicon city.
Key Factors behind the Growth of Commercial Market in Hyderabad
- Hyderabad has witnessed the growth of many IT corridors in the past few years. Due to which, there arose a need for more office space leasing. Development of IT corridors in Manikonda, Gachibowli, and Nanakramguda has added momentum in the commercial activity up to a large extent.
- Another reason behind the increasing office space leasing activity in Hyderabad is the growth of coworking spaces or startup culture. Coworking spaces and startups in India are capturing the Indian office space market with fast speed. This has led to an increase in the demand of commercial spaces wherein an organization can set up its complete structure by paying less.
- The price and rentals of commercial space in Bengaluru are very high than Hyderabad. Due to this many leading companies like Novartis Healthcare, Microsoft, and JP Morgan Chase and Co are looking to set up their offices in Hyderabad’s newly emerging IT parks.
- Finally, better infrastructure and good connectivity is also a reason behind the growth of commercial activity in Hyderabad.
Expert suggests that all these reasons will help Hyderabad in maintaining the same position in the coming quarters too.