CBRE report unveils Hyderabad's phenomenal office space surge in 2023
Hyd witnesses an impressive 35 per cent year-on-year growth in office space absorption, soaring to 10.1 mn sq. ft. in 2023, a striking leap from the previous year
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Hyderabad: CBRE South Asia Pvt. Ltd., a premier real estate consulting firm in India, has revealed significant insights from its 'CBRE India Office Figures Q4 2023' report, shedding light on a remarkable surge in office space leasing within Hyderabad.
The report paints a picture of impressive growth, showcasing a substantial year-on-year rise of about 35 per cent in office space absorption in Hyderabad. The absorption skyrocketed to a commendable 10.1 million sq. ft. in 2023, marking a considerable leap from the 7.4 million sq. ft. recorded in 2022, indicating a robust expansion in the city's commercial real estate sector.
During the final quarter of 2023 (Oct-Dec), Hyderabad displayed a robust space absorption rate of 3.5 million sq. ft., aligning with the city's upward trajectory. Simultaneously, the supply of office spaces during the same period stood at 4.5 million sq. ft., underscoring the city's vibrant real estate dynamics and the growing demand for office spaces.
The report highlights key sectors that played pivotal roles in driving this surge in absorption. The technology sector led the absorption rates with a substantial 24 per cent followed closely by research consulting & analytics at 15 per cent and life sciences contributing 14 per cent.
The report also spotlights notable transactions during Oct-Dec'23, showcasing significant leases secured within the city. Major corporations such as PepsiCo, Sanofi, and PrimEra Medical Technologies secured substantial spaces, marking significant expansions in Hyderabad's commercial landscape. PepsiCo leased an impressive 4,19,300 sq. ft. in Laxmi Infobahn - Block 2 & 4, Sanofi secured 2,80,000 sq. ft. in The Spire - Tower 100, while PrimEra Medical Technologies expanded into 1,48,000 sq. ft. in Capital Park, underlining the diverse and expanding interests of key players in the city's real estate market.
It's noteworthy that the surge in Hyderabad's office space uptake predominantly stemmed from smaller-sized deals, primarily encompassing spaces less than 50,000 sq. ft., showcasing a varied demand spectrum across different scales within the city.
Further analysis within the report delineates the dominance of the IT segment in absorption, claiming a significant 66 per cent share. Additionally, the SEZ segment captured a notable 20 per cent while the non-IT sector secured a commendable 14 per cent depicting a well-diversified pattern in Hyderabad's office space occupancy trends.
This pronounced growth in office space leasing in Hyderabad underscores the city's robust commercial real estate market, characterized by diversified sectoral interests, a surge in smaller-sized deals, and a strong focus on technology-driven sectors. The findings of the CBRE report highlight Hyderabad's continued ascent as a preferred destination for businesses seeking dynamic and diverse office spaces in India's evolving corporate landscape.
The city's increasing allure in the commercial real estate sector not only reflects its potential for varied industries but also portrays a promising landscape for further expansion and investment, solidifying its position as a key player in India's thriving corporate ecosystem.
