As per Savills, an international property consultant, Hyderabad is surging as the economic powerhouse of India.
By Realty Plus
The economic success story of Hyderabad has been highly based on the below four key factors.
Policy Push: Proactive government policies such as Information Communication Technology (ICT) Policy 2.0, 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 story of Hyderabad.
Infrastructure: Steady infrastructure creation and upgrades, including the Nehru Outer Ring Road (ORR), expansion of metro rail and the implementation of a Strategic Road Development Plan (SRDP), have ensured excellent connectivity in and around the city, thereby enhancing core real estate potential. Other planned infrastructure developments include the Regional Ring Road (RRR) and Elevated Bus Rapid Transport System (EBRTS).
Affordability: Relatively affordable price points have defined ‘The Hyderabad Opportunity’ to a large extent particularly in the commercial office market, wherein the entire city enjoys a cost advantage. Hyderabad stands to benefit most from sub-dollar office rentals over a long period of time. Therefore, it is a major market for flexible spaces. The city witnessed 2.3 mn sq. ft. of leasing activity from flexible spaces in the period 2020-22, which is around 15 per cent of the shared space demand in the country. Similarly, residential capital values and rentals for the secondary business districts or sub-urban areas of Hyderabad are 10-20 per cent lower, compared to similar localities in other major cities in southern India.
Human Capital: In FY22, almost 1.5 lakhs employment opportunities were realised in the IT/ITeS sector which in turn translated to a phenomenal one-third of the IT related jobs in the country. By the end of FY22, IT/ ITeS employed around 7.8 lakh people in the state (primarily Hyderabad); this is a 24 per cent YoY increase compared to FY21. People are particularly drawn in by the quality of life the city offers to working professionals and students alike.
It is however to be noted that a fifth driver of the momentum is also now working at great pace. That fifth element is the pin-sharp sectoral-focus.
Transit Oriented Development (TOD) Approach: This approach is adopted to address the challenges of urban sprawl by concentrating the activities at a node or along a public transit corridor, thereby increasing the efficiency of land utilisation. Areas in proximity to the airport in South Hyderabad can benefit the most from such a model.
Sharp focus sectors such as Life Sciences, Data Centres, EV Ecosystem, AVGC and Aerospace: Developing a world class life science city in the peripheral areas of Hyderabad will provide a significant boost to existing clusters. It is anticipated that revenues from the life sciences sector in the state will be 3-4 times the current levels and reach US$ 40-50 billion by 2030.
By 2025, Hyderabad will have a 7-10 per cent share (~2.5 mn sq. ft.) in India’s data centre stock. Hyderabad’s EV ecosystem is likely to witness US$ 3- 4 billion of investments, employing more than 1 lakh people by 2030. Creation of a world class Telangana Mobility Valley (TMV) is also a big step in this direction. iv. Currently, around 150 Animation, Visual Effects, Gaming and Comics (AVGC) companies provide direct employment to approximately 30,000 people. With significant impetus from the state government, the sector can support 0.5-1.0 lakh people in the next 5 years v. The Maintenance, Repair & Overhaul (MRO) industry within the aerospace segment in the country is likely to reach US$ 2-3 billion in the next five years, and Hyderabad is likely to play a prominent role in it
