Hyderabad's IT Boom Fuels Demand for Office Space

The recent leasing of over 8.7 lakh square feet of office space by four MNCs in Hyderabad signifies the city's robust commercial real estate market, with built-in rent increases and a promising growth trajectory.

HyderabadIt SectorOffice SpaceReal Estate MarketMncsQualcommLtimindtreeIbm IndiaSp Capital Iq IndiaReal Estate NewsJun 17, 2024

Hyderabad's IT Boom Fuels Demand for Office Space
Real Estate News:Hyderabad's thriving IT sector is driving up demand for office space, with four major multinational companies (MNCs) recently leasing a combined total of over 8.7 lakh square feet of office space across the city. The companies involved in these significant deals include Qualcomm, LTIMindtree, IBM India, and S&P Capital IQ India. Qualcomm leased the largest space at 4.14 lakh sq. ft in Hitech City's Skyview building for INR 3.15 crore monthly rent, while IBM India secured 1.06 lakh sq. ft in Divyasree Orion, Gachibowli for INR 70.23 lakh monthly rent. S&P Global's research arm, S&P Capital IQ India, also leased The Skyview building, taking 2.41 lakh sq. ft for INR 1.77 crore monthly rent. LTIMindtree rounded out the group, leasing 1.09 lakh sq. ft in The Skyview building for INR 89.18 lakh monthly rent. All leases are for five years with built-in rent increases. This surge in office space demand reflects the overall positive outlook for Hyderabad's real estate market, driven by the city's strong IT-ITeS sector, ongoing infrastructure development, and vibrant business ecosystem. According to ANAROCK Research, Hyderabad's residential market has seen impressive growth between 2021 and the first quarter of 2024, with approximately 218,800 new residential units launched and over 154,300 units sold during this period. West Hyderabad, known for its high concentration of office spaces, has seen even stronger growth in the residential market, with average residential property values jumping by 52% in the last few years. The recent office space deals and positive residential market trends highlight Hyderabad's position as a growing business hub, well-positioned for continued growth in the years to come.

Frequently Asked Questions

Which MNCs leased office space in Hyderabad?

The MNCs that leased office space in Hyderabad include Qualcomm, LTIMindtree, IBM India, and S&P Capital IQ India.

How much office space was leased by the MNCs?

The MNCs leased a combined total of over 8.7 lakh square feet of office space.

What is driving the demand for office space in Hyderabad?

The demand for office space in Hyderabad is driven by the city's strong IT-ITeS sector, ongoing infrastructure development, and vibrant business ecosystem.

How has Hyderabad's residential market performed in recent years?

Hyderabad's residential market has seen impressive growth between 2021 and the first quarter of 2024, with approximately 218,800 new residential units launched and over 154,300 units sold during this period.

What is the average price per square foot of residential properties in West Hyderabad?

The average price per square foot of residential properties in West Hyderabad is currently INR 7,200.

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