Office rentals in Hyderabad sees 8% surge

Office rental values in Hyderabad have witnessed an 8% increase, reaching Rs 66 per square foot per month, up from Rs 61 in the same period last year, according to recent data from Anarock Research. Hyderabad has surpassed Bengaluru in attracting the highest influx of new office supply in the first half of the fiscal year. The city ranks second to Chennai, where rental values experienced a 10% rise from Rs 62 to Rs 68, as reported.

Other major cities such as Bengaluru, Pune, and Kolkata have each seen a 7% annual growth in office rental values. The Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) of Delhi registered a 5% increase each. The average rental value for Grade A office space across these cities is Rs 83 per square foot per month, up from Rs 77.5 in the corresponding period in FY23, according to the report.

Despite global layoffs and shrinking business volumes, the commercial office space demand in India remained stable in the first half of FY 2024, with a 5% yearly jump in new completions and only a 1% drop in net absorption. Prashant Thakur, the regional director and head of research at Anarock Group, highlighted the positive mid-to-long-term outlook, citing the availability of Grade A offices at competitive rents. Bengaluru led in net office absorption, and the IT/ITeS sector dominated leasing transactions in H1 FY2024. Additionally, the share of the co-working segment rose from 11% to 24% during this period.