BFSI, technology drive office space take-up in Hyderabad
According to by CBRE South Asia report, the BFSI (Banking, Financial Services and Insurance), technology, and flexible space operators were the key sectors that drove absorption in Hyderabad
Hyderabad: Hyderabad’s office sector has seen a significant boost in January-March 2023, with a total space take-up of 1.4 million sft, as per the latest office report by CBRE South Asia.
The report highlights that BFSI (Banking, Financial Services and Insurance), technology, and flexible space operators were the key sectors that drove absorption in Hyderabad. Additionally, the report indicates that small-sized deals of less than 50,000 sft drove office space take-up.
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CBRE India Office Figures Q1 2023 report recorded some key transactions in Hyderabad, such as a large BFSI firm leasing 340,000 sft in Salarpuria Knowledge City Parcel V – Opel, Warner Bros. Discovery leasing 120,000 sft in International Tech Park Hyderabad (ITPH) – Block A – Phase 1, and a large flexible space operator leasing 97,000 sft in Mindspace West – Bldg No 9.
The report suggests that the office leasing activity in India has increased by 9 per cent YoY and touched 12.6 million sq. ft. during the Jan-Mar’23 period, with Bangalore, Delhi-NCR, and Chennai accounting for 62 per cent of the overall transaction activity.
Additionally, the report suggests that domestic firms overtook American companies in terms of quarterly leasing, accounting for nearly half of the leasing activity in the Jan-Mar’23 quarter.
Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India said that in line with past trends, Hyderabad is expected to continue to drive absorption.
– In Hyderabad, key sectors that drove absorption included BFSI (42%), technology (28%) and flexible space operators (13%)
– Hyderabad office space take-up was driven by small-sized (less than 50,000 sft) deals
– Key transactions recorded in the city during Jan-Mar’23 were:
• A large BFSI firm leased 340,000sq. ft. in Salarpuria Knowledge City Parcel V – Opel
• Warner Bros. Discovery leased 120,000 sft. in International Tech Park Hyderabad (ITPH) – Block A – Phase 1
• A large flexible space operator leased 97,000 s ft. in Mindspace West – Bldg No 9
