Hyd’s Large Format Office Space Sees 109% Yearly Growth In H1

Hyderabad: With increase in the number of Companies setting up Global Capability Centres (GCCs) in Hyderabad, the demand for large office spaces has shot up in the city. Absorption of large office spaces (one lakh sft or more) has witnessed 109 per cent year-on-year (YoY) growth compared to 1.47 million sft in H1 2023, a Knight Frank India report said.

In H1 2024, 3.08 million sft of large office space was transacted, which made up 61 per cent of Hyderabad’s total transactions. The total office leasing market witnessed 71 per cent YoY growth, with a total of five million sft of area being absorbed during H1 2024, according to the real estate consultant’s finding.

Joseph Thilak, National Director- Occupier Strategy and Solutions - Hyderabad, Knight Frank India, said: “Hyderabad has seen strong growth in demand in recent years, reinforcing its position as a preferred hub for businesses. This demand is fuelled by the city’s quality of life, strong infrastructure, and steady influx of top-tier talent. The recovery of the Information

Technology sector in 2024, along with increased hiring activity, particularly by GCCs, is anticipated to further boost commercial leasing demand in the coming months.”

The report further said that the first half of 2024, about 26 per cent of transactions, totalling 1.29 million sft, took place in mid-sized office spaces ranging from 50,000 sft to one lakh sft. This category registered YoY growth of 200 per cent, up from 0.43 million sft in H1 2023. Small office spaces, measuring below 50,000 sft, made up 13 per cent of transactions in H1 2024, totalling 0.67 million sft.