Hyderabad: Hyderabad has emerged as a favourite destination for multinational companies setting up their global capability centres (GCC), with 60 per cent of the office space demand in the city coming from this category.
The office space transactions from GCCs increased from 0.2 million sq ft in the first half 2023 to 3 million sq ft in 2024, which underscores the growing importance of Hyderabad as a hub for global operations, the Knight Frank India report said.
Nearly one-third of office space, Knight Frank India’s report said, was acquired by GCCs in the country was in Hyderabad.
Another real estate consultancy CBRE also said office space leasing in Hyderabad increased significantly during January-June period.
The office space leasing stood at 4.4 mn. sq. ft. in 2024 compared to 3.4 mn. sq. ft. in the same period last year. The supply stood at 4.6 mn. sq. ft. in January-June 2024. Key sectors that drove the space absorption included Life sciences (27 per cent), research, consulting & analytics (27 per cent), technology firms (17 per cent).
The average transacted rent increased four per cent `68 per sq ft per month.
In the first half of 2023, the information technology sector experienced a slowdown due to the economic downturn in the West and resulted in a drastic drop in occupier activity. In 2024, the sector has been showing signs of recovery, with hiring on the rise on the rise in artificial intelligence, machine learning.
Office completions increased sharply by 300 per cent year-on-year during the first half of 2024 to 5 million sq ft. New supply entered in Gachibowli, Hitec City, and the Financial District.
Flex space operators leased the second highest amount of space and accounted for 15 per cent of the total leased office space in Hyderabad. Key players Isprout, WeWork, Awfis, and The Headquarters were particularly active during this period. Office space leasing by flex space operators increased by 45 per cent to 0.75 million sq ft in from 0.52 million sq ft in 2023, it said.
In the residential segment, sales have surged by 21 per cent on an annual basis in the first half of 2024, with 18,573 units getting sold. About 22,200 units were launched this year. About 67 per cent of these new launches were for homes priced over `1 crore.
“The government's ongoing investments in key infrastructure projects, including the Hyderabad Metro Rail and the Regional Ring Road, are anticipated to enhance the city's appeal as an attractive place for both living and working. These developments are geared to further stimulate the demand for housing in Hyderabad,” said Joseph Thilak, national director- occupier strategy and solutions (Hyderabad and Chennai), Knight Frank India.
