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1 Overview
Hyderabad, the capital city of the State of Andhra
Pradesh, is an established IT/ITES, Pharmaceutical and
Biotech destination. With the demand for separate State
of Telangana for several years since independence,
on 30 July 2013, the Central Government announced
the creation of Telangana state from the existing State
of Andhra Pradesh. 2 June 2014 has been declared
as Telangana state formation day and from that date
Telangana came into existence as the 29th state of India.
Hyderabad will be joint capital for both Telangana and
erstwhile Andhra Pradesh for a period of 10 years.
The city of Hyderabad is spread over fve districts
viz. Hyderabad, Ranga Reddy, Medak, Nalgonda and
Mahboobnagar. The Hyderabad Metropolitan area (under
the jurisdiction of Hyderabad Metropolitan Development
Authority (“HMDA”)) comprises nearly 7,229 sq km.
Industrial activity in Hyderabad is quite broad based
with sectors like IT/ITES, bio-technology, apparel parks,
pharmaceuticals, construction etc. having presence in
the city. IT/ITES and pharmaceutical & biotechnology
industry are dominant players and are expected to play
an increasing role even in future.
Low cost of living as compared to other Indian metros,
good quality of life, rapid pace of infrastructure
development, and a proactive government have led to
increased corporate interest and investments in the
city. With the growing competition amongst Indian
states to attract investments in various industries and
service sector, the State with its proactive approach has
undertaken several infrastructural initiatives to equip the
city to handle large scale projects and investments in
the city. The population of Hyderabad as per 2011 census
was 7.75 million.
2 Key Demand Drivers
The city has over the last few years witnessed expansion
both in terms of its area and population. The growth in
Hyderabad city’s economic base (primarily establishment
of IT/ITES industry) has altered the real estate dynamics
in the city. There has been development of all segments
of real estate (offce space, residential, retail and
hospitality) in the city. The entry of leading national and
international developers to the city has accelerated real
estate development in the city.
Primary growth drivers in the city are:
IT/ITES services
Pharmaceutical & bio-technology manufacturing,
research and development
Scientifc research and development (“R&D”)
The city houses many Fortune 500 Corporations, the
majority of them related to the IT/ITES industry –
including the likes of Microsoft, Computer Associates,
Amazon, GE, IBM, AMD, Facebook, Accenture,
Google, Motorola, Deloitte, Dell, QUALCOMM, Verizon,
Convergys, and Hewlett-Packard. Besides international
giants, Indian companies have a strong presence here
too. Infosys, Wipro, Cognizant Technologies, TCS, ICICI,
Polaris and others have set up their development centres
in the city.
Pharmaceutical & biotechnology industry is a dominant
player and is expected to play an increasing role in the
future. Hyderabad is considered as the ‘bulk drug’ capital
of the country due to the presence of a large number of
bulk drug units which accounts for about 30-35%35 of the
total production in the country currently
Hyderabad is also home to several fnancial services
companies like Wells Fargo, GE, Deloitte, UBS, etc.
The establishment of these industries has triggered the
growth of the commercial offce market in Hyderabad.
Hyderabad commercial market overview
35
Business Line- April 28, 2013