|
| Hyderabad sees increase in leasing activity |
| BS Reporter / Chennai/ Hyderabad Nov 11, 2009, 00:21 IST |
|
Hyderabad office market continued to witness an increase in the overall leasing activity in the third quarter of 2009 as compared with the last two quarters, property consultant Jones Lang LaSalle Meghraj (JLLM) stated.
JLLM said that the central business district (CBD) comprising Begumpet, Somajiguda, and Raj Bhavan Road did not witness any tenant vacating spaces for the first time in the year during the third quarter. However, there were incidents of tenants vacating spaces in the secondary business district (SBD) including Banjara Hills, Jubilee Hills and Hitec City.
The overall net absorption witnessed a significant increase in the last three months. Most of this absorption is due to the completion of the buildings that were pre-leased in the previous quarters. The overall vacancy too increased compared with the second quarter of the current year due to the high vacancy in the newly completed buildings in suburbs.
The city witnessed completion of three buildings in the third quarter that include Divyasree Solitaire and Divyasree Trinity II in Hitec City and Second Phase of DLF Cyber City in Gachibowli.
This added about 1.3 million sft to the total stock and increased it to 17 million sft.
The overall rental values continued to correct. However, the rate of correction has slowed down as compared with the second quarter. Hitec city witnessed the highest correction as compared with the other micro markets that was about 8 percent q-o-q. The capital values remained stable in most of the micro markets that shrank the yield rates.
Sentiment in the Hyderabad retail market also continued to improve, witnessing a moderated demand. Due to the success of GVK Mall and other malls in the city in attracting strong footfalls, the market condition was optimistic in the third quarter compared with the previous two quarters of 2009. Net absorption increased. However, most of this net absorption came from pre-leased space in the previous quarters in newly operational malls.
JLLM said that the overall rental values corrected by 9 per cent q-o-q. The prime central micromarket Banjara Hills and Jubilee Hills corrected by 4 per cent and prime suburbs- Hitec City and Gachibowli -- corrected by 9 per cent q-o-q.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
Content Guide
