Office leasing in Hyderabad increases by 27 percent
Key sectors that drove absorption included Life sciences (27 percent), research, consulting & analytics (27 percent), technology firms (17 percent).
Hyderabad: Office space leasing in Hyderabad stood at 4.4 mn sq ft (million square feet) in Jan- Jun ‘24 compared to 3.4 mn. sq. ft. during the same period last year. The supply stood at 4.6 mn sq ft in Jan-Jun’24, ‘CBRE India Office Figures Q2 2024’ report, released on Friday said.
On a quarterly basis, office leasing in Apr-Jun’24 stood at 2.3 mn sq. ft. The supply stood at 2.5 mn sq ft in Apr-Jun’24. Key sectors that drove absorption included Life sciences (27 percent), research, consulting & analytics (27 percent), technology firms (17 percent).
The report highlighted that Hyderabad office space take-up was driven by small-sized (less than 50,000 sq. ft.) deals during Apr- Jun’24.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “Amidst a dynamic landscape, the first half of 2024 witnessed a surge in office space absorption driven by life sciences, tech and Research, consulting & analytics firms. Towards the later part of 2024, the demand for quality office spaces is poised to remain strong as portfolios expand and utilization rates rise.
On a pan-India basis, overall office leasing remained strong with gross office leasing touching 32.8 mn. sq. ft. during Jan-Jun’24, recording an increase of 14 percent year-on-year across nine cities, the second-highest H1 leasing.
The nine cities include Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad. According to the report, total supply of 22.1 mn. sq. ft. was recorded during Jan-Jun’24 period.
Bengaluru led office space absorption, accounting for about one-fourth of the total leasing during Jan-Jun’24 period, followed by Delhi-NCR at 16 percent , Chennai at 14 percent, Pune and Hyderabad each contributing 13 percent . Bengaluru, Hyderabad, and Mumbai led supply additions, collectively accounting for 69 percent of the total in the same period.
The report indicates technology companies saw the highest share and accounted for 28% of the total office leasing, followed by flexible space operators at 16%, BFSI firms at 15%, engineering and manufacturing (E&M) at 9% and research, consulting & analytics firms (RCA) at 8% during Jan-Jun ‘24.
Ram Chandnani, MD, Advisory & Transactions Services, CBRE India, said, “India’s robust workforce, competitive costs, and established ecosystem ensure its prominence as a key market for GCCs. With a projected 20 percent growth in GCC presence by 2025, the Indian office market is poised for significant expansion. Established players are eyeing large-scale city campuses, while newcomers are favouring flexible space operators for scalability. Going forward, global firms in BFSI, technology, and Engineering & Manufacturing.”
