HYDERABAD: Hyderabad is among the top three cities in India in terms of office space absorption in Q2 of 2022, according to CBRE figures. The new office spaces in the city were spread across 2.6 million square feet.
The city also witnesses a few major transactions such as Qualcomm leasing 1.1 million sq.ft in CommerZone Wing 1, PwC leasing 0.35 million sq. ft in My Home Twitza, and Legato leasing about 0.33 million sq. ft in Vance Business Hub (H9).
The space leasing was mainly driven by engineering & manufacturing firms (53 per cent), followed by life sciences (16 per cent) and BFSI (15 per cent) firms. Small-sized deals dominated the transaction activity; 69 per cent of the absorption during the quarter was recorded in SEZ spaces. Besides that, IT spaces occupied 22 per cent of the new office spaces and nine per cent were leased by non-IT spaces.
The report findings of CBRE highlighted strong demand for office space in India across major Indian cities in Q2 of 2022, as leasing activity grew by 61 per cent q-o-q to touch the highest-ever quarterly office space absorption of 18.2 million sq.ft. In the first half of 2022, about 26.1 million square feet of new constructions of office spaces were witnessed — denoting 26 per cent y-o-y increase.
High vol of transactions
Bengaluru, Delhi-NCR and Hyderabad accounting for almost two-thirds of the transaction activity in Q2