Hyderabad sees highest GCC occupiers in Q1

Hyderabad emerged as a standout performer, witnessing a staggering 261 per cent YoY surge in office space transactions. It recorded office space transactions of 3.0 million square feet during Q1 2024 from 0.8 million sq ft in Q1 2023

Hyderabad: Hyderabad has recorded the highest leasing activities from Global Capability Centres (GCC) in the country at 2 million sq ft during Q1 (January – March quarter) 2024, says property consultant Knight Frank India, in its latest report – India Real Estate: Residential and Office Q1 2024. The city constituted 39 per cent of the GCC oriented transactions across the leading eight markets in the country.

According to the report, the leasing volumes from India facing business substantially grew to 0.6 million sq ft in Q1 2024 from 0.1 million sq ft in Q1 2023. The third-party IT services witnessed a degrowth of 56 per cent YoY (year-on-year) from 0.6 million sq ft in Q1 2023 to 0.3 million sq ft in Q1 2024. Flex office spaces grew from 0.08 million sq ft in Q1 2023 to 0.21 million sq ft in Q1 2024.

Hyderabad emerged as a standout performer, witnessing a staggering 261 per cent YoY surge in office space transactions. It recorded office space transactions of 3.0 million square feet during Q1 2024 from 0.8 million sq ft in Q1 2023. It accounted for 19 per cent of the cumulative office transaction volumes across the leading eight cities in the country. Transaction volumes have scaled up consistently.

About 3.7 million sq ft of office completions was recorded in the city during Q1 2024 The office rent remained stable with a change of 1 per cent YoY at Rs 65.9 sq ft/month during the quarter. The city recorded the sharpest residential price appreciation of 13 per cent YoY during Q1 2024 across the Indian cities for which the average price level was recorded at Rs 5,655/sq ft.

A total of 9,550 units were sold in the quarter with a YoY growth of 15 per cent, while 11,140 units were launched during the period witnessing a minuscule growth of 1 per cent YoY. During Q1 2024, 64 per cent of the residential sales were in the ticket size of Rs 1 crore and above registering a YoY growth of 65 per cent.

The ticket sizes between Rs 50 lakh to 1 crore and below Rs 50 lakh constituted 28 per cent and 8 per cent respectively of the overall residential sales in the market. Shishir Baijal, Chairman & Managing Director, Knight Frank India, said “The real estate market experienced another exceptional period characterised by robust performances in both the office and residential sectors.”