Hyderabad emerges as top destination for large offices – 360happyhome

Hyderabad has emerged as a ray of hope and opportunity for businesses that want to expand their operations.

Hyderabad: Hyderabad, a bustling metropolis, has emerged as a leader in the office real estate sector. According to a recent report by Knight Frank India, in the year 2022, the city witnessed a surge in demand for larger office spaces, especially those of a size of 1,00,000 sq ft or more.

While the rest of the country was grappling with the economic crisis caused by the pandemic, Hyderabad emerged as a beacon of hope and opportunity for businesses looking to expand their operations.

The city’s success can be attributed to its strategic location, strong infrastructure and skilled workforce. Its reputation as a hub of innovation and technology has attracted some of the biggest names in the global IT industry, who have set up their offices in the city’s sprawling business districts.

The result has been a surge in demand for high-end office space, with companies competing for prime real estate in the city’s most prestigious locations.

Moreover, Hyderabad has also been able to maintain a healthy balance between large and small office spaces, with over 25 per cent of transactions recorded in spaces less than 50,000 sq ft and 22 per cent of transactions recorded in spaces between 50,000 and 100,000 sq ft. This diversity in the office space market has ensured that businesses of all sizes and budgets can find suitable space in the city.

This success story is no secret, with industry experts predicting that Hyderabad will remain a major player in the commercial real estate market in the coming years.

As Shishir Baijal, chairman and managing director, Knight Frank India, points out, “Large space is typically used for value-driven services such as R&D and GCC, indicating India’s continued progress in this sector. We expect the pace of office transactions to remain largely the same till 2023.”

Meanwhile, transactions for larger office spaces also remained high in other IT office locations of Pune and Bengaluru. An estimated 53 per cent of office space transactions in Hyderabad and Pune were for spaces of 100,000 sq ft or more, while it was 51 per cent in Bengaluru. Ahmedabad, NCR and Mumbai saw high traction for offices in the 50,000-1,000,000 sq ft category, with over 30 per cent of transactions taking place in this segment.

Share of sector transacted across various size categories in 2022 (Source: Knight Frank India)