Hyderabad Witnesses a 46% Surge in Office Space Leasing During January-March 2024

Hyderabad: Hyderabad office space leasing witnessed 46% spike in January-March 2024 to a whooping 2 million square feet, marking an incredible rise compared to 2023. This data for office space leasing trends in Hyderabad during Q1 2024 comes from the latest Q1 2024 CBRE India Office Figures report.

The report highlighted that the surge in office space uptake in Hyderabad during this period was predominantly fueled by small-sized deals, each measuring less than 50,000 square feet.

The IT sector absorbed 70% of the total office space, while only 34% of the supply catered to this segment. This rise in leasing indicates a high demand for commercial spaces in Hyderabad, showing a growing need for office space in the city, reflecting increased office space demand in Hyderabad.

Across nine cities, the office sector in India saw a gross absorption of 14.4 million square feet during January-March 2024, showing a 3% year-on-year decrease. Bengaluru took the lead in office leasing activity, trailed by Delhi NCR and Hyderabad, together making up 65% of total leasing. Almost half of the quarter's leasing was spurred by expansionary efforts from corporates in major cities. Key factors driving the surge in office space leasing in Hyderabad include heightened demand from IT companies and expansion initiatives by corporate firms.

Anshuman Magazine, Chairman of India, South-East Asia, Middle East, and Africa at CBRE, provided insights on the economic outlook. He affirmed that despite rising interest rates and global challenges, the Indian economy maintained its growth momentum throughout 2023. He anticipates this resilience to continue into 2024, driven by ongoing reforms, private investments, and infrastructure development. The magazine's comments hint at a favourable outlook for the office space leasing market in Hyderabad, indicating possibilities for growth and opportunities in the city's commercial real estate sector.