Hyderabad witnesses 8% yearly surge in office rental values: ANAROCK
The data revealed that the average monthly office rental value in Hyderabad escalated from Rs 61 per sq. ft. in the first half of the financial year 2023 to approximately Rs 66 per sq. ft. in the corresponding period of FY 2024.
Hyderabad: Hyderabad has experienced an upsurge in its average monthly office rental values, according to the latest data released by ANAROCK Research. The city recorded 8 per cent yearly increase, positioning it as the second-highest after Chennai, which saw a 10 per cent surge in the same period.
The data revealed that the average monthly office rental value in Hyderabad escalated from Rs 61 per sq. ft. in the first half of the financial year 2023 to approximately Rs 66 per sq. ft. in the corresponding period of FY 2024.
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Prashant Thakur, the Regional Director and Head of Research at ANAROCK Group, highlighted, “Interestingly, average rental values across the top 7 cities witnessed a 7 per cent growth in H1 FY24 compared to the same period in FY23. This rise is primarily attributed to increased construction and input costs.”
He further added that Grade A office rental values averaged at Rs 83 per sq. ft. per month across the top 7 cities in H1 FY2024, compared to approximately Rs 77.5 per sq. ft. in the corresponding period in FY23.
Contrary to widespread expectations of a downturn in commercial office space demand due to global layoffs by large corporates and shrinking business volumes, Thakur noted, “Office activity remained largely unchanged in the first half of FY 2024 compared to FY 2023. New completions witnessed a marginal 5 per cent yearly increase, while net absorption dropped by just 1 per cent.”
However, the report also highlighted a 2.6 per cent increase in office space vacancy levels in Hyderabad over the course of the financial year. Moreover, the report highlighted that Hyderabad outpaced Bengaluru with the highest influx of new office supply in H1 FY24.
Office market rentals (INR/Sq Ft/Month)
Bengaluru: Rs 84 (H1FY23); Rs 80 (H1FY24): Percentage change: 7 percent
MMR: Rs 130 (H1FY23); Rs 136 (H1FY24): Percentage change: 5 percent
NCR: Rs 81 (H1FY23); Rs 85 (H1FY24): Percentage change: 5 percent
Chennai: Rs 62 (H1FY23); Rs 68 (H1FY24): Percentage change: 10 percent
Hyderabad: Rs 61 (H1FY23); Rs 66 (H1FY24): Percentage change: 8 percent
Pune: Rs 74 (H1FY23); Rs 79 (H1FY24): Percentage change: 7 percent
Kolkata: Rs 54 (H1FY23); Rs 58 (H1FY24): Percentage change: 7 percent
Top 7 cities: Rs 78 (H1FY23); Rs 83 (H1FY24): Percentage change: 7 percent
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