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Capital values in the Peripheral districts and Madhapur is around Rs.3,000 per sq ft and rental values are around Rs.36 per sq ft.

Real estate services firm Cushman & Wakefield released this information in a recent research report.

Begumpet and Banjara Hills constitute the CBD and its vicinity and are still regarded as prime office locations. They continue to cater to small space requirements and retail developments. Lack of large land parcels and unclear titles in these micro markets, will continue to be a hurdle in developing new projects. There is a shortage of good quality office space in the CBD and its vicinity and the pressure is expected to ease by early 2007, with the completion of some new projects. Current capital values in the CBD are Rs.3,100 per sq ft and rental values are around Rs.38 per sq ft.

There is a growing need for “serviced office spaces” in the city with numerous corporate tenants planning entry or expansion in Hyderabad. They often need smaller, temporary office space to accommodate 20-50 workstations with scalability options. Lack of adequate business centers in the city has at times forced tenants to compromise on the quality of space and services leased by them. The launch of a centre by Regus in Q1 2007 will address this concern to some extent, but demand for serviced office units will be higher.

IT/ITES and Bio-Tech companies continue to be the key drivers for demand in the city and this demand is expected to grow at a steady pace.

Approximately 14 million sq.ft. is likely to come up over the next 2-4 years, in the western suburbs of Madhapur, Gachibowli and Raidurga. This estimate includes projected space likely to be constructed in SEZs and other commercial developments and the true impact on the market can be assessed once greater clarity is received on the project details and the delivery dates.

Leasing Transactions
In key leasing transactions, a prominent US IT firm leased approximately 35,000 sq.ft. furnished office space in an independent building in Madhapur. Zen QA, Port Ware and Login Soft have all leased between 5,000 to 5,500 sq ft each in Mindspace, Cyberabad, Madhapur.

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About Cushman & Wakefield

Cushman & Wakefield is the world’s pre-eminent real estate services firm. Founded in 1917, the firm has 192 offices in 58 countries around the globe, and more than 11,000 talented professionals. The firm delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, and investors through every stage of the real estate process.  These solutions include helping clients to buy, sell, finance, lease, and manage assets. Cushman & Wakefield also provides valuation advice, strategic planning and research, portfolio analysis, and site selection and space location assistance, among many other advisory services.