COMMERCIAL REAL ESTATE OUTLOOK
- With COVID-19 fallout impacting the commercial market, conversion rate of office space leasing in Hyderabad was merely 10 percent of the pre-pandemic levels.
- Somajuguda, Punjagutta, HITEC City and Begumpet recorded a few rental deals by IT/ITeS firms in Grade A offices spread within 10,000 sq ft.
- Lease rate declined by nearly 30 percent, QoQ, due to hefty negotiations amid the existing challenges. Besides, new supply also diminished as the investor sentiment reeled under pressure.
- Amid the restrictions on functioning of food and entertainment zones and decreased footfalls, vacancy rate in malls in Jubilee Hills and Banjara Hills increased by nearly 10 percent against the pre-COVID-19 levels.
- Co-working spaces that were earlier the foci of small entrepreneurs and multinational firms bore the brunt as their annual leasing dipped by nearly 60 percent in Jul-Sep 2020.