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Hans India
01-05-2025
- Business
- Hans India
Hyderabad Tops Office Vacancy as Supply Outpaces Demand
Hyderabad has emerged as the city with the highest office space vacancy among India's top seven urban markets, driven by persistent supply outpacing demand since 2020. According to new research by Vestian, 59 million sq. ft. of new office stock has been completed in the city since 2020, while 48.5 million sq. ft. has been absorbed, resulting in a growing inventory of unoccupied space. By the end of Q1 2025, Hyderabad's vacant office inventory reached 28 million sq. ft., the highest among major metros. The vacancy rate is expected to climb further due to a steady flow of new developments in the pipeline, even as overall national construction activity saw a quarterly decline. Pan-India construction levels dropped 39% from the previous quarter and 12 per cent year-on-year, totaling 9.5 million sq. ft. in Q1 2025. This slowdown was partly due to minimal or no new supply additions in Hyderabad, Chennai, Mumbai, and Kolkata during the period. Despite reduced construction activity, office leasing across top Indian cities remained steady. The first quarter of 2025 saw a 34 per cent annual increase in space absorption, totaling 17.96 million sq. ft. Strong demand in western markets such as Mumbai and Pune fueled this growth, with their combined share rising from 24 per cent in Q1 2024 to 37 per cent in Q1 2025. Technology sector requirements, particularly from the IT-ITeS segment, continue to support demand. This sector accounted for 34 per cent of the national office absorption in Q1 2025, following a 36 per cent share in the prior quarter. The expanding influence of artificial intelligence has significantly impacted IT leasing patterns and expansion plans. Shrinivas Rao, FRICS, CEO of Vestian, noted, "The Indian office market has held its ground in early 2025, propelled by steady demand from sectors like GCCs, IT-ITeS, BFSI, and flexible office providers. While quarter-on-quarter absorption dipped, forward-looking demand signals remain positive." Q1 2025 Market Data Overview: - Bengaluru led the country with 4.08 million sq. ft. of office absorption, accounting for 23 per cent of the national total, despite a 3 per cent quarterly decline. - Mumbai followed with 3.99 million sq. ft., up 60 per cent year-on-year but down 11 per cent from the previous quarter. - Pune reported a 276 per cent annual increase, absorbing 2.66 million sq. ft., raising its share from 5 per cent to 15 per cent. - Chennai posted the steepest annual fall in absorption at 52 per cent, down to 1.6 million sq. ft. - NCR (Delhi region) saw 2.73 million sq. ft. of absorption, up 51 per cent year-on-year. - Kolkata had the lowest absolute absorption at 0.23 million sq. ft., but posted sharp increases of 44 per cent YoY and 289 per cent QoQ. New Completions Data: - Bengaluru led new completions with 3.5 million sq. ft., representing 37 per cent of the national total. - Pune followed with 2.9 million sq. ft., or 31 per cent of new supply. - NCR doubled its completions to 2.6 million sq. ft., a 44 per cent quarterly rise. Among occupiers, GCCs led leasing activity in Bengaluru with 39 per cent of the city's absorption. The sector saw a 39 per cent quarterly and 119 per cent yearly increase. Hyderabad, despite a 17 per cent rise in annual absorption, recorded negligible new completions in Q1 2025, pushing its vacancy level to a record high.
Scottish Sun
30-04-2025
- Business
- Scottish Sun
Aerial pics show world's biggest building site for 105mile sideways skyscraper ‘The Line'… but project faces big blow
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) PLANS for the world's longest sideways skyscraper have been dealt a "big blow" - while new images showed the audacious project's skeletal building site. Saudi Arabia's trillion-dollar megacity The Line has been plagued by scandal and setbacks - and now the NEOM project is facing another hitch. Sign up for Scottish Sun newsletter Sign up 9 An aerial view of The Line's progress shows the construction site Credit: NEOM 9 Concept image of The Line, Saudi Arabia's flagship NEOM megacity Credit: Giles Pendleton FRICS 9 New images showed the bare-bones construction site in the Saudi dessert. A concrete floor runs along the sand with little sight of activity - as the flagship city looks nowhere near complete. And now, NEOM's acting boss Aiman al-Mudaifer has said a "comprehensive review" of the ambitious build has been launched. The review for Saudi Prince Mohammed bin Salman's crown jewels scheme aims to look at the feasibility and priority of projects within the scheme. The acting leader has also faced simmering backlash over his management style and pressure to deliver results. One source close to the build said the main projects at NEOM were "in general going on", but added that some were being "reviewed in terms of their scope". The source added the review was "taking place in a n environment of limited resources", according to Financial Times. "Some things were done that need to be looked at again," they said. The Line - which was originally planned to house 1.5 million people but will now only accommodate 300,000 - covers desert and mountains by the Red Sea. Saudi Arabia unveils ultra-lux resort for BILLIONAIRES complete with private docks for world's biggest superyachts It is part of the NEOM gigaproject, alongside other megalomaniac structures such as Oxagon, Zardun and Trojena. The Saudi dream has struggled to meet deadlines and stay behind budget limits. The Prince's Vision 2030 programme aims to develop the kingdom with projects like these aiming to boost other sources of revenue. It has also drawn scepticism for its unrealistic-ambition - and criticism for its alleged human rights abuses. But another person close to the matter said the review was being conducted to 'decide what to double down on'. They said that it was related to "spending recalibration". Prince Mohamed serves as the de facto leader and chair of NEOM, which is owned by Saudi Arabia's Public Investment Fund worth £700billion. Mudaifer was appointed as NEOM's acting chief executive when the company was entering a "new phase of delivery". They said that his leadership would "ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project'. 9 Images showed the dessert site along which will host the megaproject Credit: NEOM 9 Progress of NEOM for the megaproject along the Red Sea Credit: NEOM 9 Part of the plan for design for The Line - Neom's flagship 170km-long city Credit: AFP 9 A digital mock-up one of the marinas planned for Neom Credit: AFP But the wildly ambitious megacity is hurtling towards financial meltdown - and has now faced this "big blow". Flying taxis, ski resorts in the desert, and the 105-mile (170-kilometre) mirrored metropolis The Line are currently looking like a monument to hubris, mismanagement, and economic overreach. It has a projected price tag of £6.9trillion. And it comes after Trump's tariffs - which could worsen its situation even more. Top 5 blunders plaguing NEOM project BY Juliana Cruz Lima, Foreign News Reporter Saudi Arabia's NEOM project, despite its ambitious vision, has been criticized for several major blunders that have raised concerns about its feasibility, ethics, and overall execution. Here are the top five major blunders associated with the project: Forced Displacement of Indigenous Communities: One of the most significant controversies surrounding NEOM is the forced displacement of the Huwaitat tribe. This indigenous community, which has lived in the area for centuries, was forcibly removed from their ancestral lands to make way for the development of the mega-city. The Saudi government's crackdown on those who resisted, including the killing of a tribal leader, Abdul Rahim al-Howeiti, has drawn widespread condemnation from human rights organisations. This blunder not only sparked international outrage but also tainted NEOM's image as a forward-thinking, humane project. Environmental Impact and Sustainability Concerns: NEOM has been marketed as an environmentally sustainable city, but the environmental impact of such a massive development is a major concern. The project's scale—covering over 26,500 square kilometers—poses significant risks to local ecosystems, particularly in the Red Sea, which is home to rich marine biodiversity. Critics argue that the construction of artificial islands and extensive urbanisation could lead to irreversible ecological damage. The enormous water and energy demands required to maintain a green city in the desert also raise questions about the project's sustainability. Economic Viability and Cost Overruns: NEOM is one of the most expensive development projects in history. But there are serious doubts about its economic viability. Critics question whether the project can attract the necessary foreign investment and whether it will generate sufficient returns to justify the enormous expenditure. The economic risks are further compounded by potential cost overruns and delays, which are common in megaprojects of this scale. This financial gamble has led some to worry that NEOM could become a costly white elephant if it fails to meet its ambitious goals. Technological Overreach and Ethical Concerns: NEOM is envisioned as a high-tech city, heavily reliant on artificial intelligence, robotics, and extensive surveillance systems. While this technological ambition is central to NEOM's identity, it also raises significant ethical concerns. The level of surveillance planned for the city could lead to unprecedented control over residents' lives, sparking fears about privacy and civil liberties. The lack of transparency about how AI will be used, coupled with concerns about job displacement, has also led to criticism that NEOM's technological vision may be more dystopian than utopian. Cultural and Social Disconnect: NEOM's vision of a futuristic, liberalized society clashes sharply with Saudi Arabia's deeply conservative cultural norms. The project plans to introduce mixed-gender sports, entertainment events, and other liberal lifestyle elements that are rare in the kingdom. This cultural shift has raised concerns about a potential clash between NEOM's globalised vision and the traditional values of Saudi society. The disconnect between the project's ambitions and the broader cultural context has led to skepticism about whether NEOM can truly integrate into Saudi Arabia's social fabric without causing significant friction. Among its other scandals, satellite images analysed by Naraspace and ESA showed construction slowing across key NEOM sites. While the Hidden Marina and wind farms near The Line show some signs of life, vast swathes of the project are going dark – literally. Nighttime light intensity, used as a proxy for construction activity, has plummeted in the eastern development zones since last September. Bloomberg reports Saudi officials now believe just 2.4 kilometres of the 170-km Line will be built by 2030. Additionally, an ITV documentary alleged 21,000 migrant workers had died since 2016 under the Vision 2030 programme. A Saudi health and safety body dismissed the documentary as 'misinformation.' 9 The Shushah Island resort, part of the Neom project Credit: Neom Project
