Demand For Office Space Rises In Hyderabad

Hyderabad: The demand for grade A offices in Hyderabad has increased to a record high of 12.3 million square feet (msf), outpacing the previous highs of 2019 by almost 21 per cent, as per Cushman & Wakefield’s latest office data. Overall, leasing volume has risen by almost 85 per cent from 2022 and 37 per cent from 2023. The record-breaking numbers demonstrate the dynamic growth of business foundations as well as city's growing appeal as a city and its conducive eco-system.

With around 70 per cent of the market, Madhapur led the demand as usual, followed by Gachibowli at 28 per cent. Interestingly, all the space that was leased was for immediate occupation suggesting that companies are actively planning for imminent growth. Furthermore, over half of the demand has come from larger deals (more than 100,000 sf), which suggests that headcounts are increasing, and the city is gaining significance in their portfolios. What’s more interesting is that GCCs have anchored the growth with nearly 28 per cent of the demand, supported by a wealth of talent, expanding infrastructure, cost savings, and a better quality of living compared to other tech cities.

On an annual basis, new completions have decreased by 21 per cent to 10.2 msf. Despite strong demand, Madhapur's new office supply has decreased by 57 per cent to 3.6 msf, indicating a lack of suitable land parcels for development.