HYDERABAD: A S Rao Nagar is the new high street of Hyderabad. Dwarfing
neighbourhood 'kirana' stores and dimly-lit apparel shops are swank
supermarkets and high-end retail chains that have mushroomed in the area
over the last three years. Little wonder then that leasing rates in
this pocket have shot by over 22% since 2011. In fact, according to
latest findings of the real estate
consultancy firm Cushman & Wakefield, rentals in A S Rao Nagar,
which rarely crossed the Rs 50-60 bracket, have touched Rs 90 per square
feet (sft) in the last one year.
Joining this high street bandwagon are areas such as Himayatnagar, Raj Bhavan Road and Kukatpally, that have seen maximum leasing activity over the past 12 months, the survey revealed. The current lease rates here hover around Rs 100-125 per sft. While the conventional upmarket spaces in Banjara Hills and Jubilee Hills continued to remain the focus areas among retailers, these pockets saw negligible change in rentals owing to crunch in availability. "Adding to that is the economic slowdown that made these areas unaffordable to some," said Navin Nandwani, director (south) of the global firm.
Apart from commercial outlets, Hyderabad will also have close to 2.86 million sft of mall space available over the next three years, the survey suggested. Kukatpally alone will see three new malls complete with foreign and domestic retail brands coming up shortly. Market analysts attribute this rapid growth to the increasing population in the area that has shot phenomenally since 2008, the reason being Kukatpally's proximity to the IT hub.
And this is only likely to swell in future, they add, considering the expansion plans of several offices on the Hi-Tec City-Madhapur-Gachibowli stretch. In fact, the Cushman & Wakefield research indicates that the city is already staring at a 48% increase in pre-committed office space, with majority of it designed around this belt. But, while the absorption, as per the firm's estimates, is set to touch 3.5 million sft by the end of 2012, it would still be more than one million sft lesser than last year.
In 2011, the total office space leased out was 4.65 million sft. "The demand is expected to increase moderately next year onwards as economic conditions are likely to improve. It would still be driven by the IT sector followed by pharmaceuticals, bio-tech and R&D," said Sanjay Dutt, executive managing director ( South Asia), Cushman & Wakefield.
The residential sector that touched rock bottom first due to recession in 2008 and then the 'T' agitation in 2009, however, has still failed to bounce back. Though the first half of 2011 saw some movement with developers launching 6,000 units, this year only 1,500 homes were put up for sale. The global firm pegs this to the ambiguity in government policy (GO 45 on reserving space for economically weaker sections of society) that led to many developers holding back their launch plans. It speculates that the supplies will jump by 40,000, largely along the western corridor in the next three years.
"But with so many delays in projects, for various reasons, customers now, are only keen on buying homes that are nearing completion. The fate of ventures still under construction continues to be worrisome," said a city realtor adding, "While the prices are nearly back to what they were in 2008, it should have been better by now had we not lost out on four-five years. As against the Rs 7,000-7,500 per sft bracket, homes in Jubilee Hills should have been selling for Rs 13,000-15,000 by now."
Joining this high street bandwagon are areas such as Himayatnagar, Raj Bhavan Road and Kukatpally, that have seen maximum leasing activity over the past 12 months, the survey revealed. The current lease rates here hover around Rs 100-125 per sft. While the conventional upmarket spaces in Banjara Hills and Jubilee Hills continued to remain the focus areas among retailers, these pockets saw negligible change in rentals owing to crunch in availability. "Adding to that is the economic slowdown that made these areas unaffordable to some," said Navin Nandwani, director (south) of the global firm.
Apart from commercial outlets, Hyderabad will also have close to 2.86 million sft of mall space available over the next three years, the survey suggested. Kukatpally alone will see three new malls complete with foreign and domestic retail brands coming up shortly. Market analysts attribute this rapid growth to the increasing population in the area that has shot phenomenally since 2008, the reason being Kukatpally's proximity to the IT hub.
And this is only likely to swell in future, they add, considering the expansion plans of several offices on the Hi-Tec City-Madhapur-Gachibowli stretch. In fact, the Cushman & Wakefield research indicates that the city is already staring at a 48% increase in pre-committed office space, with majority of it designed around this belt. But, while the absorption, as per the firm's estimates, is set to touch 3.5 million sft by the end of 2012, it would still be more than one million sft lesser than last year.
In 2011, the total office space leased out was 4.65 million sft. "The demand is expected to increase moderately next year onwards as economic conditions are likely to improve. It would still be driven by the IT sector followed by pharmaceuticals, bio-tech and R&D," said Sanjay Dutt, executive managing director ( South Asia), Cushman & Wakefield.
The residential sector that touched rock bottom first due to recession in 2008 and then the 'T' agitation in 2009, however, has still failed to bounce back. Though the first half of 2011 saw some movement with developers launching 6,000 units, this year only 1,500 homes were put up for sale. The global firm pegs this to the ambiguity in government policy (GO 45 on reserving space for economically weaker sections of society) that led to many developers holding back their launch plans. It speculates that the supplies will jump by 40,000, largely along the western corridor in the next three years.
"But with so many delays in projects, for various reasons, customers now, are only keen on buying homes that are nearing completion. The fate of ventures still under construction continues to be worrisome," said a city realtor adding, "While the prices are nearly back to what they were in 2008, it should have been better by now had we not lost out on four-five years. As against the Rs 7,000-7,500 per sft bracket, homes in Jubilee Hills should have been selling for Rs 13,000-15,000 by now."
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