Hyderabad: Between April and September, Hyderabad used 8.2 million square feet (sf) of office space, overtaking Bengaluru to take the top rank in the nation.
The office real estate market in the state capital has picked up steam as more corporations and businesses begin to summon back their personnel to the office, either in a hybrid model or full-time.
The IT/ITeS sector continues to dominate the office space market in Hyderabad, accounting for around 39% of the total absorption, according to research published by Anarock, a real estate services business. However, industrial or manufacturing users as well as owners of co-working spaces also accounted for a sizeable portion of the demand for office space.
“Manufacturing/Industrial occupiers have gained ground by commanding a 22 per cent share in the market, followed by co-working providers taking up 21 per cent of the office leasing share,” the report stated.
According to the statistics, the average monthly office rent throughout the entire city was Rs 61 per sft. The highest monthly rentals of Rs 50 to 75 per square foot were recorded in the Banjara Hills and Hitec City neighbourhoods, followed by Begumpet, Gachibowli, Kokapet, and Uppal.
Some of the significant leases included those from Qualcomm (1.10 million square feet in Commcerzone Wing 1 at Madhapur), PwC (0.35 million square feet in My Home Twitza), ZF Technology (0.30 million square feet in Phoenix Centaurus), and Bosch (0.25 million square feet in Knowledge City).
The city had an 82% increase in new office space between April and September of this fiscal year, accounting for the biggest proportion of 34% across the top seven Indian markets.
According to Prashant Thakur, Senior Director and Head of Research at Anarock, the combined market share for new office supplies in Hyderabad, Bengaluru, and Chennai was 66 percent.
According to the research, if there are no significant hindrances, such as predicted layoffs or a global crisis, the trend may continue in the ensuing quarters.
