Hyderabad dominates Indian office space market

City exhibited a robust 17.71 per cent YoY growth in transactions for office spaces exceeding 100,000 square feet, reinforcing its position as a dynamic business hub in India

Hyderabad: Knight Frank India has released a report highlighting Hyderabad’s remarkable performance in the commercial real estate sector. In the third quarter of 2023, the city exhibited a robust 17.71 per cent year-on-year (YoY) growth in transactions for office spaces exceeding 100,000 square feet, reinforcing its position as a dynamic business hub in India.

The report reveals that Hyderabad accounted for 23.58 per cent of the total transactions in the large office space segment across India’s leading eight markets in Q3 2023.

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Hyderabad’s consistent growth in office asset transactions is noteworthy, with positive trends observed across three office space segments. In the category of large office spaces, those exceeding 100,000 square feet, Hyderabad experienced a remarkable surge in transactions. The total area transacted in this segment increased from 290,000 square feet in Q3 2022 to 341,364 square feet in Q3 2023, reflecting a substantial 17.71 per cent YoY growth.

Furthermore, mid-sized office spaces, ranging from 50,000 square feet to 100,000 square feet, also demonstrated positive signs with a 3.49 per cent YoY increase. Transaction area in this category climbed from 66,000 square feet in Q3 2022 to 68,304 square feet in Q3 2023.

Even smaller office spaces, those with less than 50,000 square feet, witnessed a notable YoY surge in transactions, experiencing a growth of 15.44 per cent. The total area transacted in this segment rose from 20,021 square feet in Q3 2022 to 23,112 square feet in Q3 2023.

During the third quarter of 2023, major leasing activities were recorded in Hyderabad’s office space market. Global Capabilities Centers led the way, followed by flex office spaces, India Facing Business, and third party IT Services.