According to the latest report by Vestian, one of India’s leading real estate consultants, office space absorption in Hyderabad grew by a remarkable 270 per cent, reaching 3.7 million sq ft.
Published Date – 21st November 2023, 04:35 PM
Hyderabad: During the July-September quarter, Hyderabad emerged as the leader in India’s office space market, witnessing a significant increase in leasing and new supply.
According to the latest report by Vestian, one of India’s leading real estate consultants, Hyderabad witnessed a remarkable 270 per cent increase in office space absorption, reaching 3.7 million sq ft. During the same period, the supply of new office space grew by 175 per cent, reaching 5.5 million sq ft.
In contrast, Bengaluru witnessed a slowdown in office space absorption with a 28 per cent decline in total office space, totalling 3.6 million sq ft. Moreover, new supply in Bengaluru declined by 25 per cent during the July-September period to 2.7 million sq ft, as reported by Vestian.
The report, covering the top seven cities in India, showed that office leasing grew by 21 per cent and new supply increased by 26 per cent during the third quarter of the calendar year.
Srinivasa Rao, CEO of Vestian, said the Indian office sector witnessed a surge in activities during the third quarter of 2023, witnessing the highest absorption levels since the pandemic, along with a jump in new completions. On the demand-supply trend, he said, “Key office markets in southern cities grew and captured the highest share in pan-India absorption and new completions.”
Rao predicts a possible increase in rentals in southern cities, including Hyderabad, as many large companies are encouraging their employees to return to the office, indicating a revival in demand.
Office Market:
Demand-Supply Dynamics (Gross Lease):
Absorption (in million sq. ft.):
City Q3 2023 Q3 2022 YoY change (%)
Hyderabad 3.7 1 270
Bengaluru 3.6 5 -28
NCR 3 3.50 -14
Mumbai 2.3 1.90 21
Chennai 2 1.10 82