ASCENDAS india trust ANNUAL REPORT 2014/15
6 Competition Analysis - Madhapur (continued)
Some of the prominent upcoming projects (planned for 2015 to 2017) in the subject micro-market are as follows:
Project
Area
(million sq ft)
Hitec City II SEZ/aVance Business Hub (H3, H4, H6A and H9)
2.12
KRC Mindspace (Building 12B, 12C & 18)
1.83
Block 2.2, 2.3 in TSI
1.20
Block 5, DivyaSree Orion
0.95
Salarpuria Sattva
0.90
Star Centrum
0.85
Navayuga Inspire
0.70
Block 4, DivyaSree Trinity
0.51
Source: C&W Research
7 Absorption and Vacancy of the micro-market
Of the approximately 4-5 million sq ft per annum of office space that Hyderabad has absorbed historically from 2009 till 2014,
Madhapur accounted for approximately 2.5-3.0 million sq ft of absorption per year in the last five years (50-60% of the city’s
absorption). In 2014, Madhapur accounted for highest level of absorption of approximately 4.0 million sq ft (approximately
67% of the city’s absorption) in the last six years.
Due to buoyant leasing activity and controlled supply, the vacancy in Madhapur market was low. The current Grade A vacancy
level in Madhapur micro-market is approximately 4.8% and overall vacancy is at 8.9%.
8 Outlook
Demand for office space is expected to increase moderately from 2015 as economic conditions improve. The rentals are
expected to rise in the near term in Madhapur, due to the limited vacant commercial Grade A space in the near term.
Hyderabad Metro Rail connectivity to Madhapur will further boost the attractiveness of Madhapur as a commercial destination
as compared to other commercial micro-markets in Hyderabad.
Area (million sq ft)
Vacancy (%)
Supply (million sq ft)
Absorption (million sq ft)
Source: C&W Research
5
4
3
2
1
0
2010
2011
2009
2012
2013
2014
2015
(F)
27.7%
17.3%
12.0% 7.6% 9.5%
8.9%
6.6%
G
H y d e r a b a d C omm e r c i a l M a r k e t O v e r v i e w
