HYDERABAD: Office space leasing in Hyderabad surged to 2 million sq.ft between January and March 2024, marking a remarkable 46% year-on-year (Y0Y) increase from the corresponding period in 2023, according to the latest findings from ‘CBRE India Office Figures Q1 2024’ report, a prominent real estate consulting firm in India.
The report highlighted that small-sized deals (less than 50,000 sq.ft) drove office space take-up in Hyderabad during January-March 2024.
Additionally, absorption in the IT segment accounted for 70% of the total, while the supply for the same segment stood at 34%. According to the report, key transactions recorded in the city during this period include HCL leasing 3,30,000 sq.ft in Commerzone Wing 2, Table Space leasing 1,96,400 sq.ft in Mindspace West - Building No. 4A + 4B, and Alstom leasing 1,40,000 sq.ft in Laxmi Infobahn – T6 (Phase 1). This surge in leasing activity indicated a robust demand for commercial spaces in Hyderabad.
On a pan-India basis, the office sector in India witnessed a gross absorption of 14.4 million. sq.ft during January-March 2024 across nine cities, resulting in a decline of 3 percent (Y-o-Y). Bengaluru led office leasing activity, followed by Delhi NCR and Hyderabad, together these three cities accounted for 65 percent of the total leasing activity. Nearly half of the leasing during the quarter was led by expansionary initiatives by corporates across the top cities.
“In 2023, the Indian economy continued its growth journey despite rising interest rates and global macroeconomic challenges. This trend of Indian resilience is expected to persist in 2024 with a continued focus on infrastructure development, private investments, and ongoing reforms’’, said chairman of India, South-East Asia, Middle East & Africa, CBRE, Anshuman Magazine.