Overview

Hyderabad has steadily risen to a position among the top three office markets of the country. In terms of office leasing volumes, it has progressed from being a distant sixth to its current position in a span of just three years. In 2019, the city registered record transaction activity of approximately 9.5 million sq ft, just behind Bangalore and the National Capital Region (NCR). 

The rise in commercial leasing activity can be attributed to a variety of factors. These include government support by way of investor friendly policies and infrastructure growth matching urban agglomeration expansion; as well as enabling demographics which has created an abundant and skilled talent pool. Also, the influx of MNCs over the last two decades has been instrumental in setting up large campuses and office complexes in the city. In recent landmark legislation, the state government announced a single window portal facilitating faster clearances and self-certification for real estate construction on land parcels of a specific size. Such enabling regulations have provided an important boost to the real estate sector in the city.

The evidence of the strong economic performance lies in the state’s GDP growth rate. Telangana, the newly formed state, has consistently exceeded the national growth rate since 2015. Hyderabad’s home state has also consistently secured a top three position in the state level “Ease of Business” rankings. Beyond economic prosperity, the city has demonstrated holistic progress in education, health, lifestyle and living standards. The city has constantly topped the Quality of Living Index released by Mercer from 2015 to 2019.