Hyderabad: One of Asia’s largest privately owned real estate developers RMZ Corp has declared that it would invest about Rs 14,600 crore ($ 2 billion) in commercial space projects in Hyderabad by 2023.
“Our projects will see an investment of about $2-3 billion over the next two years in Hyderabad. This will be from RMZ and its partners. This is in addition to the about Rs 16,060 crore ($2.5 billion) already invested in Hyderabad”, said RMZ Corp Managing Director Thirumal Govindraj.
Nexity with Hetero (3.3 million sqft) and Spire with Penna Cements (1.7 million sqft) projects are under construction near Raidurgam. These two projects will add five milion square feet of commercial space by 2023 end in Hyderabad, he said adding both the projects would accommodate about 50,000 people.
RMZ Corp is also involved in one more project – Vault, which is coming up in about 22.5 acre in Financial District and will have seven million square feet floor space.
“About one million sqft of commercial space in Nexity will be ready next year. This project is likely to be completed by 2023 end”, he said. About five lakh square feet space has already been booked, he pointed out. Nexity will also have a new facility, the RMZ Loft, a standalone structure with a social infra like a wellness centre, spa, and restaurant and leisure facilities. It will be open to employees as well as outsiders. Spire will be ready next year, he said.
“Nexity and Spire are close to each other. The design will be such that it will allow movement of people between the two structures,” said Govindraj. “We are planning to acquire a further five million sqft in Hyderabad. Once that happens, our portfolio in Hyderabad will be 20-21 million sqft,” the official explained.
RMZ with MyHome has already completed The Skyview. With four million sqft, it has about 40,000 employees. “We have got many requests seeking permissions for cinema shooting at the Skyview. We have declined them,” he said about the popularity of the new IT tower. Qualcomm, Micron, FB and Providence are among the clients that operate from Skyview.
“When we came to Hyderabad, the average rentals were Rs 50 to 55 per sqft. We created a premium space and rentals went up to Rs 61-62. The last deal we did was around Rs 72 per sqft,”he said about the rental trends in the city. IT, ITES, and BFSI segments are the key drivers of commercial space demand in Hyderabad.
“The Governance in Telangana is good. Implementation of key infra projects is great and that is aiding in attracting new companies,” he said adding that IT exports, which have already touched Rs 1.45 lakh crore, are set to grow further as more players are coming to Hyderabad.