Hyd's Office Mkt Presents Rs 7,010 Cr Retrofitting Opportunity

Hyderabad: The city has added significant Grade A office stock over the past decade, which stands at 134.7 million sft up until December 2024. The biggest retrofitting opportunity lies in projects completed post 2011, making 39 per cent of upgradation potential which is worth Rs 7,010 crore investment opportunity, according to a report.

In Hyderabad, 134.7 million sft of Grade A stock is available of which 26.3 per cent is vacant. The stock having upgradation potential is 95.7 million sft. Based on completion year of the project, the available upgradable stock is 17 per cent in office properties completed by 2010, 44 per cent completed between 2011 - 2020, and 39 per cent in the last few years, the report ‘Futureproofing 4.0: Opportunity through obsolescence,’ released by JLL said.

The commercial real estate and investment management Company mentioned that the western quadrant in the city, Hitec City and Gachibowli, corners significantly large share of the market activity. The biggest investment opportunity for retrofitting is available in these corridors with rental upside potential between 20 - 30 per cent.

In Hitec City, 59.5 million sft of Grade A stock presents upgradation potential with an investment opportunity of Rs 44.5 billion, which will result in rental premium of 26 – 36 per cent.