PNS|Hyderabad
A report titled ‘Hyderabad: the Sprint’ published by the London-based property consultant, Savills, said that Hyderabad is surging as the economic powerhouse of India.
The report published on Sunday highlighted the economic growth of Hyderabad after the formation of Telangana state and the key factors that led to its growth.
Commenting on the report, the Minister for IT and Industries, KT Rama Rao said, “Hyderabad is now the most sought-after gateway city for global corporations cutting across sectors. It provides an incomparable value proposition whether by way of infrastructure, policy support, quality real estate or ease of living. Most companies want to expand their footprint by increasing their presence in Hyderabad. We remain committed to creating a best-in-class and exemplary business hub. Telangana is in the forefront in identifying growth sectors and developing enabling policy frameworks to attract businesses. This report of Savills accurately identifies the growth drivers and emerging sectors that the Telangana government is working on.”
The report said that Hyderabad is on the top in terms of office leasing activity. Residential real estate has also been strong, with the city registering the highest housing sales in 2022 in the last eight years. In the retail segment too, annual supply addition increased for the first time since 2018, as 2022 witnessed around 1 mn sq. ft. of supply infusion.
As on Dec 2022, Hyderabad had around 8% share in the operational mall stock of India. Data centres, the sunrise sub-sector within real estate, have emerged as a favourite asset class for investors. Of the 500 acres of data centre-related land transactions in 2022 in the country, around 26% came from Hyderabad.
The report says that the economic success of Hyderabad has been based on the four key factors of Policy Push, Infrastructure, affordability and human capability.
“Proactive government policies such as Information Communication Technology (ICT) Policy 2.0, the Telangana Electric Vehicle (EV) and Energy Storage Solution (ESS) Policy, Space-Tech framework, state-wide optical fibre network and Growth in Dispersion (GRID) policy, and TS-ipass have powered the growth of Hyderabad. Steady infrastructure creation and upgrades, including the Nehru Outer Ring Road (ORR), expansion of metro rail and the implementation of the Strategic Road Development project speeded up growth. Relatively affordable price points have defined ‘The Hyderabad Opportunity’ to a large extent, particularly in the commercial office market, where the city enjoys a cost advantage.
Hyderabad stands to benefit most from sub-dollar office rentals over a long period of time. In FY22, almost 1.5 lakh jobs were created in the IT/ITeS sector which in turn translated to a phenomenal one-third of the IT jobs in the country,” the report said.
The study also suggested that a Transit Oriented Development (TOD) approach can be adopted to address the challenges of urban sprawl by concentrating activities at a node or along a public transit corridor, thereby increasing the efficiency of land utilization. Areas in proximity to the airport in South Hyderabad can benefit the most from such a model.
It also said that sharp focus sectors such as Life Sciences, Data Centres, EV Ecosystem, AVGC and Aerospace by developing a world-class life science city in the peripheral areas of Hyderabad will provide a boost to existing clusters.
Mark Ridley, Group & Global Chief Executive Officer, Savills said, “I am delighted to have had the opportunity to visit Hyderabad. The city has an enormous focus on innovation, IT, life sciences and infrastructure, driven by a talented workforce and a strong entrepreneurial spirit. Hyderabad has all the characteristics of a Megalopolis in the making and the momentum is unstoppable.”
Anurag Mathur, CEO, of Savills India said, “Over the last two decades, we have seen Hyderabad take a quantum leap to become one of the top-ranked markets within a short period. The city has consistently invested in future propositions like IT, life sciences, logistics, warehousing, and other areas, reflecting its vision for sustainable and inclusive development.”
