Telangana GRID to Create 35-40 Mn SqFt of Affordable Grade-A IT Office Space
The Telangana government’s GRID (growth in dispersion) policy is slated to create a supply of about 35-40 million sq ft of affordable Grade A IT office space in the non-western corridors of Hyderabad, real estate consultancy firm JLL said. Currently, HiTec City and Gachibowli account for 96% of the total Grade A office stock in Hyderabad, which has emerged as the leader in Grade A office space growth in the country with an 81% jump in the 2016-21 period and the second biggest market in India in terms of net office space absorption. By 2021 end, Hyderabad had Grade A office stock of 90.4 million sq ft, making it the fourth biggest office market in the country after Bengaluru, Mumbai, and Delhi-NCR. The city is now set to become a 100 million sq ft office market by 2022 end. Hyderabad currently holds about 12.7% share of the total Grade A stock in India and accounted for 25% of the new supply, JLL pointed out. Pointing out that the GRID policy seems to be already showing results, JLL said IT major Genpact and Ramky Estates have recently entered into an agreement to develop 14 acres adjacent to Genpact’s existing Uppal campus in the eastern part of the city, which will create 2 million sq ft office space for Genpact and around 0.9 million sq ft of residential development. “With the unlimited FAR (Floor Area Ratio) rule applicable and assuming an average of 6-7 FAR, which is currently the prevailing market practice in Hyderabad, an additional 35-40 million sq ft of Grade A IT supply can potentially be added by developers in non-Western parts of the city in next five years,” said Dr Samantak Das, chief economist, and head research and REIS, India, JLL. Das said estimated 35-40 msft figure could go up given developers may use over 50% of land for IT/ITeS purposes if incentives and office supply trigger a sustained demand.
Tags : Telangana GRID Affordable Grade-A IT Office Space HiTec City Gachibowli Dr Samantak Das chief economist and head research and REIS India JLL