Telangana's Boom: How IT and Real Estate are Fueling Growth
Hyderabad: Telangana's talent, technology, and real estate are propelling the state's economic expansion. Hyderabad has emerged as a preferred destination for global real estate investors and occupiers.
TelanganaHyderabadReal EstateItCbre IndiaCredai TelanganaReal EstateAug 20, 2024
The report analyses Telangana's economic landscape, highlights Hyderabad’s central role and the untapped potential of various tier-II and tier-III cities. It highlights the state’s approach and strategic planning to unlock opportunities for global investors, paving the way for a high growth trajectory.
Hyderabad has been a magnet for global capability centres (GCC) accounting for 21 per cent of the total India GCC leasing. Workforce readiness also offers opportunities for the manufacturing sector, start-ups and offices. This culminates into the market expansion and fast-tracking growth in the tier-II and tier-III cities, it said.
Hyderabad's IT exports have shown resilience and growth, reinforcing Telangana’s reputation as a technology leader. Hyderabad’s office stock surged to 127 mn. sq. ft. for Apr – June period.
Technology and research, consulting and analytics firms are the primary drivers of office space demand in the city. BFSI, flexible space operators, engineering and manufacturing firms, and life sciences companies are increasingly contributing to the city's office space absorption.
The city is poised for significant growth in the commercial real estate sector, with an anticipated addition of approximately 34-37 mn. sq. ft. of investment-grade business parks over the next three years, the report said.
Telangana's appeal as an investment destination is reflected in its success in securing $3 billion in FDI during FY 2023-24, doubling the previous year's investment, and attracting over $40 billion cumulatively across various sectors since 2014.
Warangal, Nizamabad, Khammam, and Karimnagar constitute the primary urban centres, while Ramagundam, Mahabubnagar, Mancherial, Nalgonda, and Adilabad are identified as secondary urban centres.
“The city's strong infrastructure, thriving IT/ITeS sector, and substantial global investments have laid a solid foundation for continued growth. We expect Hyderabad's skyline to transform with smart, technology-driven projects,” said Gipson Paul, Hyderabad head, CBRE India.
“With a focus on infrastructure development, skill enhancement, and a business-friendly environment, Telangana is well-equipped to sustain its growth trajectory. The future outlook for Telangana is bright, offering vast opportunities for investors across multiple sectors,” said E. Premsagar Reddy, president, Credai Telangana.
About CBRE India: CBRE India is a leading real estate consultancy firm that provides a range of services including advisory, transaction, and management services to occupiers, investors, and developers of real estate.
About Credai Telangana: Credai Telangana is a realtors body that represents the interests of real estate developers in Telangana. The organization aims to promote the growth of the real estate sector in the state and provide a platform for its members to network and share best practices.
Frequently Asked Questions
What is the current state of Telangana's economy?
Telangana's economy is growing rapidly, driven by its IT and real estate sectors.
What is the report 'Telangana Going Global' about?
The report 'Telangana Going Global' is a study on Telangana's economic landscape, highlighting its potential for global investors and the growth of its IT and real estate sectors.
What is the expected growth in Hyderabad's commercial real estate sector?
Hyderabad's commercial real estate sector is expected to grow significantly, with an anticipated addition of approximately 34-37 mn. sq. ft. of investment-grade business parks over the next three years.
What is the role of CBRE India and Credai Telangana in promoting Telangana's growth?
CBRE India and Credai Telangana are working together to promote Telangana's growth by providing advisory services, transaction services, and management services to occupiers, investors, and developers of real estate.
What are the primary drivers of office space demand in Hyderabad?
Technology and research, consulting and analytics firms are the primary drivers of office space demand in Hyderabad.
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