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Business EconomyPosted at: Jan 6 2021 8:24PM


Hyderabad Office space transaction grow by 640 pc in Q4 2020: Knight Frank India

Hyderabad, Jan 6 (UNI) Hyderabad’ office space transactions grew by a substantial 640 per cent and also residential sales jumps by 127 per cent in Q4 2020 as compared to previous quarter, Knight Frank India said in its 14th edition of its flagship half-yearly report.
India Real Estate: H2 2020 is a comprehensive analysis of the office and residential market performance across eight major cities for the July-December 2020 (H2 2020) period, released here on Wednesday.

According to the report, Hyderabad’s office space leasing activity transactions recorded 0.4 mn sq m (3.8 mn sq ft) in H2 2020 while new completions stood at 0.4 mn sq m (4.9 mn sq ft) during the same period.,
With news of the Covid-19 vaccine coming in, companies have started securing their office space by implementing their lease plans.
With increased business activity visible from Q3 2020 and the year-end closing have together contributed to the surge in Q4 2020 transactions volume, the report said.
The share of Banking, Financial Services and Insurance (BFSI) sector in total transactions went up from 4 per cent in H2 2019 to 30 per cent in H2 2020, recording a significant 248 per cent YoY growth in the sector’s office space absorption in H2 2020.
This increase is a result of two large BFSI deals that together accounted for 0.1 mn sq m (1 mn sq ft) of the total leasing activity in H2 2020, the report stated.
On the residential real estate market in Hyderabad, the report cited that residential home sales were recorded at 5,260 units in H2 2020. . Key contributors to the increase in residential demand in H2 2020, particularly Q4 2020, include the festive season promotions and the COVID-induced push for newer homes with better layout thereby accommodating the new requirements of work from home and digital learning arrangements for kids and working parents.
Despite the supply challenges owing to the COVID-induced lockdowns and mass exodus of labour in Q2 and Q3 2020, across Indian markets, Hyderabad’s office market recorded second highest annual supply numbers in 2020.
0.8 mn sq m (8.7 mn sq ft) of new office space entered the market in 2020, which is much higher than the decadal average of 0.4 mn sq m (4.6 mn sq ft) for a year, the report claimed.
Suburban Business District (SBD) with its Hyderabad Information Technology and Engineering Consultancy (HITEC) City and the Hyderabad Knowledge City at Raidurg, continued its dominance with a sizable 83 per cent demand share, the highest, in the total H2 2020 transactions pie.
The second-highest share, 16 per cent, was accounted for by the Peripheral Business District (PBD)-West at Gachibowli, it said.
The Telangana government’s Growth in Dispersion (GRID) policy aims to diversify occupier interest across the city zones to maintain a developmental balance.
Samson Arthur, Branch Director-Hyderabad, Knight Frank India said, “Hyderabad office market saw a significant revival in Q4 2020. Despite pandemic impact, rentals remained resilient and office demand is now seeing a recalibration of size and design. With news of vaccines coming in, global companies have commenced execution of their lease plans.
In terms of geography, West Hyderabad continued to account for the highest share in launches, as well as sales, owing to its proximity to the Information Technology (IT) business districts.
Further, HMR-Central micro market launches grew by 397 per cent YoY in 2020, whereas its 2020 sales were relatively less affected at 19 per cent YoY, the report revealed.
The spurt in launches coupled with the relatively muted sales volume have caused the unsold inventory numbers to rise to 7,180 units in H2 2020 and the quarters to sell (QTS) to scale up to 2.2 quarters in H2 2020.
Samson Arthur, Branch Director-Hyderabad, Knight Frank India said, “Recognised amongst the most affordable metropolitan cities, Hyderabad’s residential market saw a remarkable turnaround in H2 of the pandemic intervened year of 2020. Pandemic also gave opportunity for citizens to appreciate the city’s focus on infrastructure, social order and ease of living. With work opportunities remaining positive the home segment of Hyderabad’s realty promises to be equally attractive for both end users and developers.”
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