Top multinational companies bet big on Hyderabad’s commercial real estate market, lease 8.7 lakh sq ft of office space

At least four commercial leases have been inked in Hyderabad by MNCs such as Qualcomm India, LTI Mindtree, S&P Capital IQ and IBM India

Four big-ticket commercial leases, spanning 8.7 lakh sq ft, have been signed in Hyderabad for a period of five years by top multinationals like Qualcomm India, LTI Mindtree, IBM India and S&P Capital IQ India Pvt Ltd, property registration documents sourced from real estate data and analytics firm Propstack showed.

Four big-ticket commercial leases, spanning 8.7 lakh sq ft, have been signed in Hyderabad for a period of five years by top multinationals. (Representational photo) AFP PHOTO/Noah SEELAM (AFP)

Monthly rents range between ₹70 lakh and ₹3.15 crore, the documents showed.

Parties involved in the transactions include homegrown and international corporate giants such as Qualcomm India, LTI Mindtree, S&P Capital IQ and IBM India. Meanwhile, the list of lessors features Divija Commercial Properties - a joint venture between RMZ Infotechpark and Zola Real Estate - and Midas Projects Private Limited.

The commercial deals

Chip major Qualcomm India has leased 4.14 lakh square feet in The Skyview, an RMZ Corp property strategically located in the city’s commercial hub Hitech city, at a rental value of ₹76 per square feet a month. Monthly rent for the first year is ₹3.15 crore for units spread across five floors, the documents showed.

Terms of the five-year contract include rent escalation of 7% after the first year and 15% following three years of tenancy, alongside a ₹16.4 crore security deposit.

Meanwhile, two other multinational players - S&P Capital IQ India and LTI Mindtree, have leased 2.41 lakh square feet and 1.09 lakh square feet, respectively, within the same facility for five years.

The three players are existing clients of RMZ Corp and have renewed their deals with the developer, the company said answering HT’s query.

"S&P Capital IQ and LTI Mindtree are all our existing tenants in Hyderabad and they have renewed their lease with us in Skyview 10," said Thirumal Govindraj, CEO, RMZ Office and RMZ NXT.

"RMZ is evaluating multiple opportunities for future assets and will continue its strong hold in the Hyderabad markets, while it amplifies its presence PAN India and in alternate assets," Govindraj added.

Lastly, the India arm of tech giant IBM has entered into a deal with realty developer Midas Projects, for access to 1.06 lakh square feet of office space spread across two floors in Divyasree Orion, the documents showed.

The five-year contract period will see a rental hike of 5% every year. Going by a rate of ₹66 per sq ft per month, the total rental fee for the first year will amount to ₹70.23 lakh, the documents showed.

Queries have been emailed to the company. The story will be updated once a response is received.

Hyderabad's real estate market

Hyderabad’s property market has seen a notable boom in recent years on the back of strong fundamentals such as infrastructural advancements, a burgeoning IT industry, seamless connectivity and an overall thriving business ecosystem.

According to data cited in an Anarock report released on June 11, average property values in the bustling capital city saw a 45% jump between 2021 and the first quarter of 2024. Interestingly, West Hyderabad, which harbors the highest concentration of office spaces, saw real estate prices soar by a whopping 52% during the same period.

“Currently, the average price per square feet stands at ₹7,200,” said Prashant Thakur, who is a regional director and heads research at the consultancy. Land prices, which have appreciated by over 30% in the last three years, have contributed significantly to the price hikes, he added.