Hyderabad sees 11.2 mn sq ft of new office spaces in 2022, highest over last ten years
This is the third highest leasing volumes across top eight markets in India. The Information Technology (IT) sector has been the traditional anchor for the demand.
Hyderabad: Hyderabad’s commercial market witnessed a rise of 12% YoY growth in office transaction during the calendar year (CY) 2022 with office leasing of 6.7 mn sq ft, said real estate consultancy Knight Frank.
This is the third highest leasing volumes across top eight markets in India. The Information Technology (IT) sector has been the traditional anchor for the demand. However, the second half of 2022 was challenging as the IT sector deferred its expansion plans.
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Annual office completions jumped 146% year-on-year ( YoY) to 11.2 mn sq ft, highest over a decade in the city. About 92% of the total office supply received was in West Hyderabad with Hitec City and the Financial District. The average transacted rentals for Hyderabad increased 6% YoY in 2022.
Hyderabad’s residential market too continued its strong sales momentum in the year 2022. The city recorded a 28% YoY growth in housing sales volumes accounting for 31,046 units in 2022. This is the highest sales recorded in the city since 2011.
New launches saw a 23% YoY with the addition of 43,847 units in 2022. The average weighted prices for the region grew by 6% YoY.
In terms of half-yearly office transactions, Hyderabad registered 3.5 mn sq ft of leasing, recording a 20% YoY decline in the second half of the year. A base effect driven by the spike in transactions seen during the same period last year caused the drop in H2 2022. New office completions were up 56% YoY with addition of 6 mn sq ft in the second half of 2022.
The IT industry accounted for 31% of the space transacted during the second half of the year. E-commerce, education, healthcare and logistics companies among others accounted for the highest share 52% in the second half. This segment witnessed a growth from 4% during the same period in 2021 to 52% in 2022.
“The IT industry remained the mainstay of the market during the second half of 2022. This was mostly driven by large-scale
transactions inked by IT giants. Growth in IT transactions is a positive indicator for the Hyderabad market, as the city continues to
attract IT players. IT sector businesses have been driving up volumes generated by managed office/co-working players in the city,” said Samson Arthur, Senior Branch Director – Hyderabad at Knight Frank India.
Hyderabad’s residential market recorded sales of 16,353 units in the second half of 2022 registering a 32% growth YoY over the same period previous year. Total launches grew by 18% YoY to 22,491. Again, 61%
of these were launched in West Hyderabad across Tellapur, Kollur, Gandipet and Narsingi.
The Rs 50 lakh to one crore segment accounted for 45% of sales. Properties above Rs one crore gained traction, increasing the proportion of sales from 19% in the first half of 2018 to 40% in the second half of 2022.
