Demand for Big Office Spaces Goes Up in Telangana

Hyderabad: Large office spaces — 1 lakh sq. feet or more — constituted 61 per cent of Hyderabad's total transactions in the first half (H1) of 2024, with 3.08 million square feet transacted. This marks a 109 per cent year-on-year growth (y-o-y) compared to 1.47 million sqft in H1 2023, during the BRS government tenure. This trend was repeated in office spaces of different sizes.

The Hyderabad office leasing market experienced a sharp 71 per cent y-o-y growth, with a total of 5 million sq. ft of area being transacted during H1 2024. The increase in absorption by global capability centres (GCCs) and flex space operators is the key contributor to the rise in demand for large office spaces in the city.

In the first half of 2024, approximately 26 per cent of transactions, totalling 1.29 million sq. ft, occurred in mid-sized office spaces ranging from 50,000 sq. ft. to one lakh sqft. This category experienced a y-o-y growth of 200 per cent, up from 4.3 lakh sqft in H1 2023. Small office spaces, measuring below 50,000 sq. ft, made up 13 per cent of transactions in H1 2024, totalling 6.7 lakh sqft.

“Hyderabad has seen strong growth in demand in recent years, reinforcing its position as a preferred hub for businesses. This demand is fuelled by the city’s exceptional quality of life, strong infrastructure, and steady influx of top-tier talent. The recovery of the Information Technology sector in 2024, along with increased hiring activity, particularly by Global Capability Centres (GCCs), is anticipated to further boost commercial leasing demand in the coming months,” said Joseph Thilak, national director- of occupier strategy and solutions (Hyderabad and Chennai), Knight Frank India.