Hyderabad: The office space segment in Hyderabad has grown nearly four time in six years as the annual commercial space absorption has touched 1.2 million sqmt now from the 0.3 million sqmt six years ago, said Industries and Municipal Administration Minister KT Rama Rao.
Speaking at the Real Estate Summit 2020, organised by industry bodies Credai Hyderabad, TREDA, Telangana Developers Association and Telangana Builders Federation, the Minister said new investments came to Hyderabad due to safety and security.
Referring to the statements on surgical strike on Hyderabad by BJP, Rao questioned if Hyderabad was in an enemy territory like Pakistan or China.
“The political accusations are not permanent but the city is. Businesses are permanent. We have now seen a Google, Amazon, Facebook, Google kind of companies set up operations in the city. Will they or their likes come again if the peaceful atmosphere is vitiated?” he said.
TS has spent about Rs 67,000 crore in the last six years to take up many development works that improved the standard of living and also aided in attracting new investments.
The rain-battered Hyderabad has asked support from the Centre but so far nothing has been sanctioned to the city, he said. TS has paid Rs 2.72 lakh crore as various taxes in six years and through the devolution got back Rs 1.4 lakh crore.
The MA&UD Minister said registration of non-agricultural lands will begin shortly. Dharani will make the land transactions transparent and aid in unlocking the value of the land as the same can be used for mortgage or raising new loans. About 1.5 crore acre was under agriculture and about 90 per cent records are updated in Dharani, he said adding that the government would broaden the property tax net by regularising structures .
The Government has plans to do digital survey of all properties duly marking the boundaries along with latitudes and longitudes to effectively deal issue of encroachments. Two new dumpyards are being planned at Lakdaram and at Parrynagar to reduce the load on Jawahar Nagar. A strategic development plan will be implemented for nalas, lakes and Musi to ensure that flooding does not happen. This will take about three years, Rao said.
Adding to the big brands present in Hyderabad, the Goldman Sachs group, a global investment banking, securities and investment management firm that provides a range of financial services to corporations, financial institutions, governments and individuals, has selected the city for its operations, according to Sandeep Patnaik, Managing Director, JLL Hyderabad.
The win, according to Patnaik, mirrors the positive business sentiment. The office absorption last year has touched about 11 million sqft. However, this year it will be a 50 per cent down and the office space that might be absorbed could be 5-6 million sqft. “Even this demand for office space is a good aspect considering the near halt that various sectors have seen due to Covid,” he said.
P Ramakrishna Rao, President CREDAI Hyderabad, said that TS-bPASS, the single-window approval process for the real estate sector implemented in Telangana for the first time, will spur growth and attract significant investments in the industry. In addition, the Revenue, Municipal Act and Integrated Township Acts brought out by the Chief Minister K Chandrashekhar Rao are bringing efficiency in to the sector, he said.