Hyderabad office market soars: 5 mn square feet leased in H1 2024

This positive momentum is attracting a wave of companies to Hyderabad, solidifying its position as a leading business destination, the report stated.
As per the report, while the IT-BPM  sector continued to hold the top spot with a 36% share in gross leasing, the BFSI sector emerged as a strong contender, capturing 29% of the market share in H1 2024.
As per the report, while the IT-BPM sector continued to hold the top spot with a 36% share in gross leasing, the BFSI sector emerged as a strong contender, capturing 29% of the market share in H1 2024. Photo | Express

HYDERABAD : The Hyderabad office market is experiencing phenomenal growth, fuelled by a surge in demand from both domestic and global companies. According to Cushman & Wakefield’s latest report, the gross leasing volume (GLV) for the first half of 2024 (H1) is projected to reach 5 million square feet (msf), an increase of nearly 40% compared to the 3.6 msf recorded in H1 2023. This positive momentum is attracting a wave of companies to Hyderabad, solidifying its position as a leading business destination, the report stated.

As per the report, while the IT-BPM (Information Technology and Business Processing Management) sector continued to hold the top spot with a 36% share in gross leasing, the BFSI (Banking, Financial Services and Insurance) sector emerged as a strong contender, capturing 29% of the market share in H1 2024. This rise can be attributed to the influx of major BFSI organisations establishing a presence in Hyderabad, the report added.

“The prime submarket of Madhapur continued its dominance, accounting for 83% of overall leasing activity in H1 2024. However, due to limited supply in Hitec City, the Gachibowli market is expected to see a rise in demand for the next 2–3 years,” it projected.

The report pointed out that while Gachibowli’s overall vacancy rate remains high at around 47%, premium developments in the submarket are experiencing a faster decline in vacancy levels. Madhapur’s vacancy is expected to dip into single digits within the next two quarters, it added.

Responding to the report, experts said that several factors are contributing to Hyderabad’s office market boom. “The city boasts a favourable business ecosystem, characterised by continuous infrastructure upgrades, a supportive regulatory environment and a stable political environment. This, coupled with cost-effective real estate options and a readily available pool of skilled talent, creates a compelling value proposition for investors, occupiers and leading real estate developers,” they added.

The rise in office leasing is having a positive ripple effect beyond the commercial sector. It is fuelling demand not just in the residential sector, but also in alternative sectors such as co-living, student housing and others.

Experts opined that as Hyderabad continues to invest in infrastructure, attract talent and build a dynamic business ecosystem, its office market shows no signs of slowing down.

This growth trajectory positions Hyderabad as a frontrunner in the Indian office space market, offering a vibrant and fertile ground for businesses of all sizes to flourish, they said.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com