Hyderabad, Mar 15 (Representative) Hyderabad stood at 1.6 mn .sq.ft, third highest after Bangalore and Delhi-NCR in total office leasing by Life Sciences firms in the country, according to CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, on Wednesday announced the findings of its report, ‘Life Sciences in India: The Sector of Tomorrow’.According to the report, total office leasing during 2019-22 by LS firms in Hyderabad stood at 1.6 mn. sq. ft., third highest after Bangalore and Delhi-NCR. On a pan-India basis, Hyderabad recorded a share of 19% in office space taken-up by LS firms during the period. This was due to the presence of large LS clusters, grade A office spaces, quality R&D labs, incubation centers, and research institutions in the city. Further, healthcare and pharmaceuticals sub sectors led the office space take-up by LS firms in Hyderabad over the past four years. About 57 per cent of the deal closures by LS firms in the city were led by small-sized deals (< 50,000 sq. ft.), the report revealed.
The report also highlighted that Hyderabad attracted one of the biggest investments in 2022 by Biological E, who announced an investment of INR 1,800 crores in Genome Valley to expand three manufacturing facilities. On a pan-India basis, the report highlights that out of the total accumulated office space take up in India during 2019-22, American LS firms led the leasing activity with a share of about 56 percent followed by Europe, Middle East & African (EMEA) companies (24%), domestic players (19%) and APAC firms (1%). Expansions constituted more than half of the space take-up by American LS corporates during 2019-22, followed by new entrants (30%). Space take-up by EMEA LS firms was also largely led by expansions (83%) followed by new entrants (13%). Healthcare and medical devices were the prominent sub-sectors in Bangalore and Delhi-NCR during 2019-22, while pharmaceutical companies preferred Hyderabad, Chennai and Mumbai for office space take-up. The report further highlighted that as of 2019, Gujarat housed the highest number of WHO-GMP certified pharma manufacturing plants, followed by Maharashtra, Himachal Pradesh and Telangana.
Uttarakhand, Tamil Nadu, Karnataka and Andhra Pradesh are also major manufacturing hubs. Telangana leads with the highest number of US-FDA certified plants, followed by Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu, it said. Other states with a sizable presence include Madhya Pradesh and Himachal Pradesh. Further analysis of the type of operations revealed that while Gujarat is the topmost state for general manufacturing, Telangana is the leading state for analysis and API manufacturing. Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE India, said, “LS is one of the top alternate real estate choices for investors across the globe – a trend we have recorded over the past few years. In our latest APAC Investor Intentions Survey 2022, healthcare-related properties, including LS assets, were named the most popular alternate segment overtaking Data Centres (DCs) for the first time since the survey began. Hyderabad remains one of the top cities in India to attract investments in the LS sector.”