Madhapur fuels Hyderabad’s office space leasing surge
The prime submarket of Madhapur emerged as the epicenter of leasing activity, dominating with 89 per cent of quarterly office space leasing.
Hyderabad: Hyderabad has witnessed a surge in leasing activity in the first quarter of 2024. The city’s office market recorded a healthy gross leasing of 2.5 million square feet (msf), marking an impressive 125 per cent growth compared to the same period last year, latest Hyderabad office report by Cushman & Wakefield, said.
The prime submarket of Madhapur emerged as the epicenter of leasing activity, dominating with 89 per cent of quarterly office space leasing.
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Among the notable lease transactions, Sattva Knowledge Park Tower 2 in the Suburban area of Madhapur stood out, with Cigna Healthcare securing a fresh lease of 586,160 square feet. Additionally, Lloyds Bank leased 2, 13,166 square feet. Another noteworthy transaction took place at RMZ Nexity Tower 30, also located in Madhapur, where Merilytics leased 168,405 square feet.
Hyderabad’s skyline is all set for transformation with several major projects on the horizon. BSR Tech Park Tower -II in Gachibowli, spanning 1,300,000 square feet, is expected to be completed by Q2 2024. Similarly, Aparna Technopolis in Madhapur, offering 1,700,000 square feet of space, is slated for completion in the same quarter. The Spire Tower 110, also in Madhapur, is scheduled for completion by Q4 2024.
Regarding rental trends, the report noted that weighted average rents in Gachibowli remained stable, while Madhapur saw a slight increase in the first quarter of 2024. Overall, city-wide market rentals witnessed a slight uptick compared to the previous quarter, marking a 4 per cent growth compared to the same period last year.
Looking ahead, approximately 13 msf of new supply is anticipated in Madhapur and Gachibowli combined over the next three quarters, indicating a further increase in vacancy rates, the report further noted.
