Data centres, warehouses see increased demand in Hyderabad: Knight Frank report | Information Technology, Electronics & Communications Department, Government of Telangana, India
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Sri K Chandrashekar Rao
Hon'ble Chief Minister
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Sri K T Rama Rao
Hon'ble Minister for IT, Industries, MA & UD
Data centres, warehouses see increased demand in Hyderabad: Knight Frank report

Even as the conventional real estate asset classes battle Covid-19 blues, data centres and warehouses are two new asset classes that are seeing a sudden spurt in demand in the city in the midst of a pandemic, said a Knight Frank report on Wednesday.The report titled, Work from Hyderabad, said the boost in e-commerce business has created a need for more warehouses and logistics centres across the country and Hyderabad, being the distribution hub in Telangana, is also seeing increased traction in the warehousing segment.

On data centres growth, the report said, “The segment that has gathered momentum this year is data centres. The government has been effectively promoting its seismologically safe geography and high-quality cost-effective infrastructure to attract data centre investments in the state. The state has already garnered investments of Rs 25,000 crore for upcoming mega projects in the IT data centres segment, highest across industries.” Meanwhile, the report also said that office rentals for the city have remained stable despite low business volumes in 2020. Hyderabad is one of the few cities that recorded positive rental growth of 2% Y-o-Y in Q3 2020, it added.

In 2019, the city had recorded its highest ever transaction volume of 13 million sft in the office market which was also the second-highest transaction activity that year across the country. The report said that going ahead, the trajectory of Covid-19 infection rate and domestic and global growth momentum will play a critical role in determining the outlook for commercial real estate and residential real estate in Hyderabad.