Office space leasing rises 27% in Hyd to 4.4 mn sft in H124
On a pan-India basis, the second-highest H1 office leasing activity was during first half (Jan-Jun) of 2024, with total office space lease touching 32.8 million sft, an increase of 14 per cent year-on-year across the nine cities including Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad
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Hyderabad: Hyderabad registered 27 per cent y-o-y growth in office space leasing that stood at 4.4 million sft in January to June, 2024 period, compared to 3.4 million sft in the same period last year. On a quarterly basis, office space leasing in April to June, 2024 quarter stood at 2.3 million sft.
According to the real estate consulting firm, CBRE South Asia Pvt Ltd’s report, ‘CBRE India Office Figures Q2 2024,’ the key sectors that drove absorption in the city included Life sciences with 27 per cent, research, consulting and analytics at 27 per cent, and technology firms absorbed 17 per cent of the office space lease market.
The key transactions in the city recorded during the quarterly period included lease of 3 lakh sft by Sanofi, Vishwa Samudra leased 1,11,100 sft in Jyothi Valencia, and Bristol Myers Squibb leased 110,600 sft in International Tech Park Hyderabad.
Anshuman Magazine, Chairman and CEO - India, CBRE, said: “Amidst a dynamic landscape, the first half of 2024 witnessed a surge in office space absorption driven by life sciences, tech, Research, consulting and analytics firms. Towards the later part of 2024, the demand for quality office spaces is poised to remain strong as portfolios expand and utilisation rates rise.”
On a pan-India basis, the second-highest H1 office leasing activity was during first half (Jan-Jun) of 2024, with total office space lease touching 32.8 million sft, an increase of 14 per cent year-on-year across the nine cities including Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad.
According to the report, total supply of 22.1 million sft was recorded during H1, 2024. Bengaluru led office space absorption, accounting for about one-fourth of the total leasing during H1 2024, followed by Delhi-NCR at 16 per cent, Chennai at 14 per cent, Pune and Hyderabad each contributing 13 per cent. Bengaluru, Hyderabad, and Mumbai led supply additions, collectively accounting for 69 per cent of the total in the same period.
Magazine further said, “Technology sector is likely to continue to lead leasing, alongside anticipated growth in BFSI, Engineering, and Manufacturing sectors. Major cities like Bengaluru, Hyderabad, Delhi-NCR, and Mumbai will uphold their pivotal roles, while cities like Chennai and Pune are positioned for heightened office space absorption.”
