Hyderabad now accounts for 14% of India’s total office space, marking a significant milestone in the city’s evolution as a global corporate hub. According to the “Telangana Going Global” report, jointly prepared by CBRE and CREDAI Telangana, the city’s office stock surged to 127 million square feet between April and June this year, driven by strong demand from Global Capability Centers (GCCs) and other industries.

The report highlights that a thriving technology sector, a skilled talent pool, and a robust real estate market underpin Telangana’s economic growth. The city’s rapid expansion is evident, with 27% of its office stock added in the past ten quarters. This growth is also reflected in the absorption rate, with 23% of the city’s total office space leased during the same period. Over the past decade, Hyderabad’s office stock has grown an impressive 3.1 times, with technology, research, consulting, and analytics (RCA) firms leading the demand.

Emerging sectors such as banking, financial services, and insurance (BFSI), flexible space operators, engineering and manufacturing (E&M) firms, and life sciences companies also contribute to the city’s office space absorption. The report predicts that Hyderabad is not just growing but is poised for further growth, with an additional 34-37 million square feet of investment-grade business parks expected over the next three years. This potential for further growth is a promising sign for future investments.

State irrigation minister Uttam Kumar Reddy assured investors that Hyderabad’s growth trajectory remains strong despite political changes. “Hyderabad’s growth rate is the same as before, and under our government, it will be even better,” Reddy stated, predicting another real estate boom in the city. His reassurance about the city’s resilience to political changes is a testament to its stability. He also promised to address issues like lower stamp duty, increased land book value, and municipal uniform zoning regulations.

E Premsagar Reddy, President of CREDAI Telangana, emphasised that with its focus on infrastructure development, skill enhancement, and a business-friendly environment, Telangana is well-positioned to sustain its growth. “Hyderabad, along with emerging urban centres, will play a pivotal role in driving the state’s global presence,” he said.

Gipson Paul, City Head of Hyderabad at CBRE, noted the shift from back-office operations to tech companies setting up significant operations in the city. “The collaboration between the government and the industry is sending out the right messages,” Paul added. While there has been a recent decline in residential flat registrations, experts believe the boom in commercial space will eventually drive demand for residential properties as well.

As Hyderabad continues to grow and attract global businesses, the city is not just playing a role, but is set to play a crucial role in India’s commercial real estate market, further solidifying its status as a prime destination for corporate investments. This significant role in India’s commercial real estate market is a testament to the city’s potential and a reason for investors to feel proud of their potential investments.