CBRE South Asia has released a joint report titled, ‘Telangana Going Global’, at the CREDAI Telangana Statecon 2024. The report comprehensively analyses Telangana’s economic landscape, highlighting Hyderabad’s central role and the untapped potential of various tier-II and tier-III cities. The report highlights the state’s visionary approach and strategic planning to unlock opportunities for global investors, paving the way for a high growth trajectory. The report further puts spotlight on talent, tech and real estate as key drivers of sustainable growth. The report highlights Telangana’s large talent pool, which stands out as a lucrative proposition for occupiers looking to expand their base in India. Hyderabad has been a magnet for Global Capability Centres (GCC) accounting for 21% of the total India GCC leasing of ~53 mn. sq-ft between 2022 – H1 2024. Hyderabad’s total office space leasing stood at 4.4 mn sq-ft. in Jan–June 2024.
Workforce readiness also offers opportunities for the manufacturing sector, start-ups and offices. This further culminates into the market expansion and fast-tracking growth in the tier-II and tier-III cities. Hyderabad has attracted global IT giants, establishing itself as one of India’s premier technology centres. Additionally, the city’s contributions to the biotechnology and pharmaceutical sectors have cemented Telangana’s status as a global leader. The city’s IT exports have shown impressive resilience and growth, reinforcing Telangana’s reputation as a technology leader. The increased demand from occupiers has led to a significant rise in new office developments, primarily concentrated in the IT corridor and Extended IT Corridor micro-markets. As per the report, Hyderabad’s office stock surged to 127 mn sq-ft. in Q2 (Apr – Jun) of 2024. This expansion cements Hyderabad’s status as a global corporate hub, attracting GCCs from various regions. Rising occupier demand has driven significant office development, mainly in the IT corridor and Extended IT Corridor micro-markets.
According to the report, the city stands as a significant contributor to India’s office space landscape, accounting for 14% of the nation’s total office stock. Notably, the top five developers in the city, with their collective contribution of 39% to the overall office space, are the backbone of this growth. The city’s expansion is robust, with 27% of its current office stock added in the past ten quarters. This rapid expansion is mirrored in the absorption rate, with 23% of the city’s total office space leased out during the same period. Over the past five years, the city’s office stock has witnessed an impressive 1.9 times growth, accelerating to a remarkable 3.1 times growth over the last decade.
Technology and research, consulting and analytics (RCA) firms are the primary drivers of office space demand in the city. While these sectors continue to dominate, emerging players such as banking, financial services, and insurance companies (BFSI), flexible space operators, engineering and manufacturing (E&M) firms, and life sciences companies are increasingly contributing to the city’s office space absorption.
Anshuman Magazine, chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said, “As we look ahead, Hyderabad’s office market is poised for continued evolution and growth. The city’s remarkable expansion, with office space more than tripling since the formation of the state, underscores its position as a global business hub. The establishment of numerous Global Capability Centres by international corporations further highlights Hyderabad’s strategic significance on the global stage. Moving forward, we anticipate sustained demand for high-quality, convenient workspaces, particularly in the IT corridor and its extended areas. This demand will continue to drive new developments, ensuring that Hyderabad remains at the forefront of the global office market.”
Gipson Paul, senior executive director, advisory & transaction services, & city head– Hyderabad, CBRE India, said, “The city’s strong infrastructure, thriving IT/ITeS sector, and substantial global investments have laid a solid foundation for continued growth. With ongoing urban development projects, increasing demand for commercial spaces, and a rising population seeking premium residential options, we expect Hyderabad’s skyline to transform with smart, technology-driven projects. Continued investments in infrastructure and supportive government policies will further cement Hyderabad’s status as a premier real estate hub, driving both commercial and residential advancements in the years to come.”
E Premsagar Reddy, president, CREDAI Telangana, said, “As Telangana continues to advance, the state’s proactive government policies, strong economic growth, and strategic initiatives are positioning it as a leading global investment destination. With a focus on infrastructure development, skill enhancement, and a business-friendly environment, Telangana is well-equipped to sustain its growth trajectory. Hyderabad, along with emerging urban centres, will play a pivotal role in driving the state’s global presence. The future outlook for Telangana is exceptionally bright, offering vast opportunities for investors across multiple sectors. The state’s forward-thinking vision and supportive policies are paving the way for dynamic and sustainable development, ensuring a prosperous and thriving future for all.”
The state of Telangana has emerged as a beacon of economic growth in India, driven by strategic policies, cutting-edge infrastructure, and a thriving innovation ecosystem. With its world-class industrial zones, seamless connectivity, sustainable development and investor-friendly environment, the state has emerged as a premier destination for investors and a magnet for global enterprises.
Telangana’s strategic central location in India, coupled with its extensive road, rail, and air connectivity, position it as an attractive logistics and trade hub. The state’s investor-friendly policies, such as the TS-iPASS, which offers streamlined approvals for industrial projects, and programs like T-IDEA and T-PRIDE that provide financial incentives, create a conducive environment for business growth and innovation. The state boasts thriving industrial and IT sectors, with Hyderabad emerging as a key hub for pharmaceuticals and technology, hosting numerous Global Capability Centres and research institutions. Telangana’s world-class infrastructure, including specialized industrial parks and SEZs, further supports its industrial expansion and reinforces its reputation as a technology leader.
In addition to economic growth, Telangana is committed to sustainable development and enhancing the quality of life. Initiatives in green energy, smart cities, and sustainable infrastructure highlight the state’s balanced approach to progress. The state’s robust start-up ecosystem, driven by institutions like T-Hub and T-Works, fosters innovation and entrepreneurship. Telangana’s appeal as an investment destination is reflected in its success in securing $3 billion in FDI during FY 2023-24, doubling the previous year’s investment, and attracting over $40 billion cumulatively across various sectors since 2014. These achievements underscore Telangana’s growing prominence as a premier global investment hub.
Beyond Hyderabad, Telangana is experiencing a burgeoning real estate landscape across multiple urban centres. These cities, identified as primary and secondary based on geographic area, population and proximity to the state capital, are poised for significant growth due to strategic location, improving infrastructure, and burgeoning industrial activity.
The state government is actively fostering development in these regions through policy incentives, infrastructure investments, and initiatives aimed at stimulating industrial and real estate expansion. The establishment of IT office towers in select urban centres is further accelerating growth.
Warangal, Nizamabad, Khammam, and Karimnagar constitute the primary urban centres, while Ramagundam, Mahabubnagar, Mancherial, Nalgonda, and Adilabad are identified as secondary urban centres. These regions collectively represent the next phase of real estate development in Telangana, offering promising opportunities for investors and developers.