Developers in Hyderabad's Financial District and Kokapet are pivoting from commercial to residential projects as office space vacancy rates soar to 46%.
With a significant supply of office spaces already in the pipeline, many planned office blocks are being shelved in favor of residential developments.
This shift is attributed to the post-pandemic decline in demand for traditional office spaces, fueled by the rise of hybrid and remote work models.
Despite robust pre-pandemic projections for commercial real estate, the prolonged vacancies and slow leasing activity have forced developers to reconsider their strategies.
Residential projects, in contrast, have seen steady demand in these high-growth areas, particularly from IT professionals and investors.
By converting planned office spaces into housing, developers hope to tap into this resilient market while mitigating losses from underutilized commercial assets.
