Hyderabad emerges as top destination for large office spaces

Hyderabad stood out as a beacon of hope and opportunity for businesses looking to expand their operations.

Hyderabad: Hyderabad, the bustling metropolis, has emerged as a frontrunner in the office real estate sector. In the year 2022, the city witnessed a surge in the demand for large office spaces, especially those measuring 1,00,000 sq ft or more, according to a recent report by Knight Frank India.

While the rest of the country grappled with the economic fallout of the pandemic, Hyderabad stood out as a beacon of hope and opportunity for businesses looking to expand their operations.

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The city’s success could be attributed to the strategic location, robust infrastructure, and skilled workforce. Its reputation as a hub of innovation and technology has attracted some of the biggest names in the global IT industry, who have set up their offices in the city’s sprawling business districts.

The result has been a surge in demand for high-end office spaces, with companies vying for prime real estate in the city’s most coveted locations.

What’s more, Hyderabad has also been able to maintain a healthy balance between large and small office spaces, with over 25 per cent of transactions recorded in spaces below 50,000 sq ft and 22 per cent in spaces between 50,000 to 100,000 sq ft. This diversity in the office space market has ensured that businesses of all sizes and budgets could find a suitable space in the city.

The success story has not gone unnoticed, with industry experts predicting that Hyderabad will continue to be a major player in the commercial real estate market in the coming years.

As Shishir Baijal, Chairman & Managing Director of Knight Frank India, points out, “The large space take up is usually for value-driven services such as R&D and GCCs, which is a sign of India’s continued prowess in the area. We expect the momentum of office transactions to remain largely in line for 2023.”

Meanwhile, the transactions for large office spaces remained high in other IT office locations of Pune and Bengaluru, too. While an estimated 53 per cent of office area transacted were for spaces measuring 100,000 sq ft or more in Hyderabad and Pune, it was 51 per cent in Bengaluru. Ahmedabad, NCR, and Mumbai have witnessed a high traction for offices in the 50,000-1000,000 sq ft category, with over 30 per cent of transactions in this segment.

Share of area transacted across size categories in 2022 (Source: Knight Frank India) 

City	Office space categories
	<50000 sq ft	50000 to 100000 sq ft	>100000 sq ft
1. Hyderabad	25%	22%	53%
2. Pune	20%	28%	53%
3. Bengaluru	30%	19%	51%
4. NCR	41%	31%	28%
5. Chennai	57%	15%	28%
6. Ahmedabad	42%	36%	23%
7. Mumbai	49%	30%	21%
8. Kolkata	70%	30%	0%