Hyderabad Sees 71% Spike in Office Leasing Activity, Says Knight Frank
According to Knight Frank, the growing need for large office spaces in the city is mainly due to the increasing activity of Global Capability Centres (GCCs) and the expansion of flexible workspace providers.
Hyderabad Sees 71% Spike in Office Leasing Activity
Over the past decade, Hyderabad has steadily enhanced its infrastructure and overall quality of life, enabling the city to remain a dominant force in the office space leasing market. A new report from Knight Frank India, a top real estate consultancy, reveals that Hyderabad's office leasing sector recorded a significant 71% year-on-year growth in the first half of 2024, with 5 million square feet of office space leased.
The report attributes this surge largely to the expansion of Global Capability Centres (GCCs) and flexible workspace providers, driving demand for larger office spaces. Large spaces (over 100,000 square feet) made up 61% of all transactions, amounting to 3.08 million square feet, a remarkable 109% increase from 2023’s 1.47 million square feet.
Mid-sized offices (50,000 to 100,000 square feet) accounted for 26% of the total transactions in H1 2024, representing 1.29 million square feet—a notable 200% rise from the previous year’s 0.43 million square feet. Smaller offices, under 50,000 square feet, made up 13% of transactions, totalling 0.67 million square feet.
Joseph Thilak, Knight Frank India's National Director of Occupier Strategy and Solutions for Hyderabad and Chennai, emphasized that the city's sustained growth has cemented its status as a preferred business destination. “This demand is fuelled by the city’s exceptional quality of life, strong infrastructure, and a steady influx of top-tier talent,” he added.
Thilak added that the resurgence of the IT sector in 2024, combined with increased recruitment by GCCs, is expected to further elevate demand for commercial office spaces in the coming months.
