Hyderabad: Nurturing Hyderabad over the last decade with focus on quality of life and a series of measures to improve the infrastructure continue to help the city sustain its dominance in office spaces leasing.
The latest report from Knight Frank India, the country’s premier real estate consultancy, documents that Hyderabad’s office leasing market experiencing a sharp 71 per cent year-on-year (YoY) growth, with a total of 5 mn sft of area being transacted during H1 2024.
The increase in absorption by Global Capability Centres (GCCs) and flex space operators can be primarily attributed for the rise in demand for large office spaces in the city, it says.
According to Knight Frank report, large office spaces (100,000 sft or more) constituted for 61 per cent of Hyderabad’s total transactions in H1 2024, with 3.08 million sft transacted. This marks a 109 per cent year-on-year growth compared to 1.47 million sft in H1 2023.
In the first half of 2024, approximately 26 per cent of transactions, totalling 1.29 million sft, occurred in mid-sized office spaces ranging from 50,000 sft to 1,00,000 sft. This category experienced a significant YoY growth of 200 per cent, up from 0.43 million sft in H1 2023.
Small office spaces, measuring below 50,000 sft made up 13 per cent of transactions in H1 2024, totaling 0.67 million sft, the study pointed out.
Joseph Thilak, National Director- Occupier Strategy and Solutions (Hyderabad & Chennai) said that Knight Frank India points out that Hyderabad has seen strong growth in demand in recent years, reinforcing its position as a preferred hub for businesses. “This demand is fuelled by the city’s exceptional quality of life, strong infrastructure, and steady influx of top-tier talent,” he added.
The recovery of the Information Technology sector in 2024, along with increased hiring activity, particularly by Global Capability Centres (GCCs), is anticipated to further boost commercial leasing demand in the coming months, Joseph Thilak adds.