HYDERABAD: Owing to IT corridor areas, the city witnessed second highest office space leasing in the country, revealed the ‘India Office MarketView’ Quarter 4, 2019, report released by CBRE South Asia Private Limited, a real estate consulting firm.
According to the report, by the end of 2019, the gross leasing activity in the city reached 61.6 million square feet, growing by more than 25 per cent year-on-year basis. The report mentioned, “Bengaluru, followed by Hyderabad, NCR and Mumbai, dominated office leasing on an annual basis, together accounting for almost 75 per cent of the overall space take-up.”
As per the report, availability of space in the recently completed investment-grade developments in 'Extended IT Corridor' areas including Nanakramguda, Raidurgam, Manikonda and Kukatpally dominated the office space take-up. This was followed by ‘IT Corridor II’ areas including Kondapur and Gachibowli followed by ‘IT Corridor I’, which includes Hitech city and Madhapur.
The report also mentions that flexible space operators dominated the office space take up, followed by tech firms and BFSI firms. Also, "Small to medium-sized transactions (less than 50,000 sq.ft.) by domestic and US-based firms dominated leasing activity," said the report.
The report also said that Hyderabad dominated the overall investments in office space in the Quarter-4 of 2019 followed by Chennai and Mumbai. The city also stood third among all cities in the year 2019 when it came to pre-leasing activity.
In 2020, the gap between office space leasing in Hyderabad and Bengaluru is expected to reduce mainly due to the culmination of large-sized pre-commitments and the city is also likely to witness supply addition in core locations, according to the report.
Ram Chandnani, Managing Director, Advisory & Transaction Services, India, CBRE South Asia Pvt. Ltd, said, “A large quantum of investment-grade supply is lined up for release in Hyderabad. This is drawing interest from several flexible space operators and tech firms.”
City’s gross leasing activity grew 25 per cent. According to the report, by the end of 2019, the gross leasing activity in the city reached 61.6 million square feet, growing by more than 25 per cent year-on-year basis