BENGALURU: Qualcomm, the world leader in 3G and next generation mobile technologies, has leased about 3.8 lakh sq ft office space in Hyderabad in one of the largest transactions this year to consolidate its operations across the city.
The office space is expected to be occupied by March 2016 and can seat about 1,000 employees, two people familiar with the transaction said.
“The company is currently working out of multiple locations in Hyderabad and wants to move into one office,” said one of the persons, who did not wish to be identified. The company spokesperson did not reply to media.
The California-headquartered company, which employs 31,300 people across the world, also picked up a four-acre plot in Bengaluru last year. It plans to set up an innovation lab in the city to create hardware data system for India and the global market.
The deal comes at a time when Hyderabad office space is seeing sudden increase in demand from large multinational companies that wish to expand their presence in the country.
Some of the large deals that got concluded recently include that involving cab-hailing app startup Uber (1.5 lakh sq ft), NTT Data (120,000 sq ft) and Accenture (234,000 sq ft).
The bifurcation of Andhra Pradesh had delayed office space plans of several companies. With the formation of the new state, Telangana, and new policies being rolled out by the new government, the unease among corporates has eased, and they have started looking for office space.
“Post the formation of Telangana, office space enquiries have witnessed an increase in Hyderabad. The government of Telangana is proactively marketing Hyderabad as destination for IT/ITeS companies to establish their offices here. To encourage startups, the government has also come up with a T-Hub (incubator for startups),” said Ram Chandnani, managing director-transaction services at real estate services firm CBRE South Asia.
According to CBRE 2.3 million sq ft was absorbed in the Hyderabad market in the quarter to September.
“Office rentals in Hyderabad are lowest when compared to major metros in India and this encourages corporates to consider setting up their operations here. On the supply front, there is limited Grade A supply in the key micro markets,” said Chandnani.
Real estate consultant Cushman & Wakefield said that office absorption is estimated at 158 million sq ft during 2015-19 across top eight Indian cities. This year is expected to record net absorption of 29.5 million sq ft office space in top eight cities.