Hyderabad, June 12, 2013: Hyderabad is one of the key IT destinations of India and the capital city of Andhra Pradesh. Jones Lang LaSalle India has moved in Hyderabad when the city was taking its initial steps into IT industry in 2004. The decision to enter the city was based on its promise to develop into one of key hubs of real estate investment in India. This was factored by the city’s international standard infrastructure and business friendly government policies. Jones Lang LaSalle India’s Hyderabad operations facilitate end-to-end real estate services to clients and have about 550 employees in the city.
JLL: Strengthening Real Estate Growth – Hyderabad says “Over the last fifteen years Hyderabad has seen a sea change in its skyline. Driven by efficient city planning and proactive government, Hyderabad has witnessed tremendous development in the real estate sector. International, national and local developers have invested in the city and developed quality real estate to support the growth of the city. The development of international airport, PVNR Expressway and Outer Ring Road are few visible developments which have changed the face of the city and made Hyderabad one of the most investment friendly cities in India. Although the political instability couple of years back dented the overall investment sentiments of the city, it is now bouncing back as the political scenario is much stable at present.
Jones Lang LaSalle has recently facilitated acquisition of the Phoenix Info City SEZ at Hitec City by Ascendas India Trust and a joint development by Bangalore based developer Prestige Group.
With the services sector being the key driver of real estate in Hyderabad, Jones Lang LaSalle India’s Hyderabad operations have captured 35% of the city’s office real estate leasing business. In last two years about 3.4 million sq ft of office space was leased by the Hyderabad team. An interesting aspect is the fact that this business was generated not only through JLL’s mandated clients but also through the Firm’s active local business development.
JLL’s retail leasing business in Hyderabad has closed 55 transactions in 2012, facilitating major international and national retailers to open their stores in the city. In fact, the Firm leased out the entire GVK One Mall singlehandedly. The residential business in Hyderabad is in its initial stages and has marketed many key projects so far.
Sandip Patnaik, Managing Director – Hyderabad, Jones Lang LaSalle India says, “Office space investments in Hyderabad have started showing its early shoots of growth, with capital values for commercial properties rising by almost 15% y-o-y after remaining stable for almost 4 quarters. Hyderabad has a stock of about 26 million sq ft of multi tenanted leasable office space with about 95% occupancy. Another 11 million square feet is currently under construction and will come up in next 3 years. The quality and services of the existing office spaces have risen remarkably in recent times with entry of international and national developers in the city.”
Residential property appreciation in Hyderabad has been to the tune of 17% over the last one year. The residential market was in slumber for two years and has started improving since 2012. There were significant increase in launches after the modification of G O 45 and sales also started improving. As the new project launches were priced higher than the market average capital values started increasing. Retail activity in Hyderabad is mostly focussed on the high streets as there is less space available in the existing malls. Malls that are under construction such as Manjeera Trinity Mall and Forum Crytal Mall are witnessing strong pre- leasing activity as Hyderabad has limited supply of mall space in pipeline.
“Jones Lang LaSalle India also is firmly focused on various industrial and warehousing corridors along the Nagpur Highway and Bangalore Highway and other parts around the Outer Ring Road,” says Alastair Hughes. “Thanks to its strong national and global footprint, Jones Lang LaSalle India is eminently placed to cater to the rapidly growing demand for office and industrial real estate in this region. This demand comes from an exciting bouquet of Indian and international players who are eager to open operations in these industrial areas. The prime interest drivers for these players are the abundant land availability and good infrastructure.”
The Western part of Hyderabad is definitely the key investment destination of the city and it will continue to retain its momentum in the future. Locations such Old Mumbai Highway, Shankarpally, Narsingi, Pupulguda, Kowlur, Kokapet, Mokila and APPA Junction etc in the west and Warangal highway and Vijayawada highway in the east are definitely on our watch list. Towards the North West, many developers are investing on residential projects while eastern part has witnessed few office developments. The Genome Valley in the north eastern part of the city is another development zone which can be looked at in future.
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47.7 billion of assets under management.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 22,000 employees operating in 8 offices in 14 countries across the region. The firm was named the Best Property Consultancy in Asia Pacific at ‘The Asia Pacific Property Awards 2011 in association with Bloomberg Television’. For further information, please visit our website, www.ap.joneslanglasalle.com
About Jones Lang LaSalle India
Jones Lang LaSalle is India’s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across eleven cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 5,400, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, Industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory.
The firm was named the Best Property Consultancy in India at ‘The Asia Pacific Property Awards 2012.