Demand for business centres
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The Cushman & Wakefield report notes a growing need for serviced office spaces in the city
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While the demand for business centres in the market has risen considerably with the inflow of multinational companies in the city, the supply scenario for these developments has remain in its infancy.
Noting this mismatch in its latest report ‘Office Snapshot Hyderabad’, Cushman & Wakefield says the demand was also due to pressure on corporates to commence operations and lease additional spaces for their existing operations.
“The need for business centres and serviced office space is felt in locations like Hi-Tec City, which have limited non-IT office space. The growing demand is essentially being catered to by two operational centres in Hyderabad which are DBS in Secunderabad and Hyderabad International Convention Centre (HICC) at Hi-Tec City,” the report says.
The rentals in DBS range from Rs. 20,000 to Rs. 25,000 per seat per month, where as HICC rates vary depending on the client specifications as well as the duration of requirement.
Premium centres such as Regus and Vatika among others have proposed projects in high demand areas like Banjara Hills. These new business centres are slated to be operational by quarter 2, 2007, the Cushman & Wakefield report says.
Star hotels in the city do not offer their business centres to corporates as these are solely meant for the hotel guests’ use.
Incubation space is often offered to clients by the developers within their development or on leased space from another developer /investor.
Typically, these are provided for a requirement of over 20,000 sq.ft. space and the rates could vary extensively depending upon the area required, client profile, space committed in the project underway, as well as the agreement between the client and the developer, it points.
The Cushman & Wakefield report also notes a growing need for serviced office spaces in the city, though commencement of the proposed business centres would partially address the short fall to some extent.
“Due to the continuing short supply, most developers are likely to continue to create and offer incubation space to clients that commit to long term space with them,” it says.
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