The Telangana issue may have kept Andhra Pradesh on the boil, but Hyderabad continues to beat the heat by reigning as a hot and happening destination for IT/ITeS (information technology and IT enabled services ) sector, according to the latest report of real estate consultancy major Cushman & Wakefield.
In fact, with the exception of Bangalore, Hyderabad beat other key IT/ITeS destinations like Chennai, NCR and Pune when it comes to luring IT/ITeS players to mop up office space during the April-June 2011 quarter.
According to Cushman & Wakefield, of the total 1 million sq ft space that was lapped up by companies in Hyderabad during the quarter, nearly 80 lakh sq ft space was mopped up by the IT/ITeS sector, with the remaining being picked up by sectors like BFSI (banking, financial services and insurance), engineering and consulting.
In comparision, NCR saw 64 lakh sq ft space being picked up by IT/ITeS players, Chennai 54 lakh sq ft and Pune 48 lakh sq ft space. Bangalore saw a whopping 2.96 million sq ft space being lapped up by IT players during the quarter.
The quarter saw social networking giant Facebook expand its presence in the city by leasing another 1.2 lakh sq ft space at the Raheja Mindspace, where it had made its debut in the middle of last year.
Interestingly, the total 1 million square ft space absorption during the April-June quarter this year marks a 13% jump over total office space absorption in the city during the January-March 2011 quarter, putting to rest the fears that the T-stir was taking its toll on the city’s growth prospects.
“Hyderabad, which has been under the scanner due to its current political conditions, has put up an impressive growth which has shown promise over the last few quarters,” said Arvind Nandan, executive director (consultancy services) Cushman & Wakefield. In fact, “Hyderabad remains dependent on the growth of IT/ITeS and is expected to remain so,” Nandan added.
The reason for the healthy demand for space from the IT/ITeS sector is largely driven by the fact that IT/ITeS companies have long ago discounted the T-factor, explained Naveen Nandwani, office director (Hyderabad and Bangalore) at Cushman & Wakefield.
“The impact of bandhs and T-related disturbances on the sector is now minimal due to the positive efforts taken by the AP government like granting of essential services status to the sector and beefing up security in the area,” he said.
According to Cushman & Wakefield, IT/ITeS would continue to drive demand for office space in the city in the coming quarters as well despite the fact that a supply of around 1.5 lakh sq ft was expected to be added during the July-September 2011 quarter as several large projects get completed.
The trend of increasing absorption, the report added, was likely to continue during the second half of the year because the second half of the year usually sees a larger absorption of space going by previous yearly trends. “The demand for office space in Hyderabad is outstripping supply and putting pressure on rentals especially in the IT district. Rentals which were in the Rs 34-38 per sq ft range in areas like Madhapur are expected to go up in the coming quarters,” Nandwani explained.http://content.magicbricks.com/it-gives-hyd-realty-a-boost
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