While realty in Hyderabad is striving to come out of the slump and regain its vibrancy, decreasing rentals of buildings and commercial space in Central Hyderabad is giving sleepless nights to owners of such properties.
The “TO LET” board is ubiquitously visible on many office and commercial spaces in the central part of Hyderabad, where owning or renting a commercial space was considered desirable. Many commercial complexes are lying vacant in places such as Abids, Begumpet, Punjagutta and Somajiguda. Apart from a decrease in business activity, the other major reasons are traffic problem and availability of still better places in areas such as Hitech City and Madhapur.
Historically, Abids was regarded as the central business district (CBD), where most of the business activity was conducted. Businesses later, moved to areas such as Banjara Hills, Begumpet and Punjagutta. Narotham Reddy of Cybercity Builders & Developers states, “now, no particular place can be regarded as CBD with satellite CBDs springing up all over the city”.
It is observed in the past 3-5 years, that with the lateral expansion of the city, new shopping and business areas have emerged such as AS Rao Nagar, Attapur, Habsiguda, Kompally, Kukatpally, Madhapur, Miyapur and Vanasthalipuram, thereby reducing the demand for commercial space in Central Hyderabad, say some realty experts.
Like other metro cities, Hyderabad too is facing problems such as:
▪Traffic congestion in CBD
▪Emergence of satellite CBD townships all over the city, providing better ambience for a affordable rental in Madhapur and Hitec City.
However, it is heartening to note that the overall situation in business of renting commercial space in the city remains unchanged, but the demand has only shifted to new locations.