Hyderabad: The Hyderabad office market is experiencing a period of phenomenal growth, fueled by a surge in demand from both domestic and global companies.
According to the latest Cushman & Wakefield report, gross leasing volume (GLV) for H1 2024 (January-June 2024) is projected to reach an impressive five million square feet (msf), a significant increase of nearly 40 per cent compared to the 3.6 msf recorded in H1 2023. This positive momentum is attracting a wave of companies to Hyderabad, solidifying its position as a leading business destination.
Realtors say this data indicates that the real estate sector in the city has been witnessing a boom after the Congress government came to power in December 2023.
Several factors are contributing to Hyderabad’s office market boom, the report says. The city boasts a favourable business ecosystem, characterised by continuous infrastructure upgrades and a supportive regulatory environment and a stable political environment. This, coupled with cost-effective real estate options and a readily available pool of skilled talent, creates a compelling value proposition for investors, occupiers, and leading real estate developers.
The demand for office space is particularly strong for high-quality Grade-A buildings. This trend is indicative of a clear preference among businesses for modern work environments that can support expansion plans, operational consolidation, and the evolving needs of a modern workforce, the report added.
The rise in office leasing is having a positive ripple-effect beyond the commercial sector. It’s fuelling demand not just in the residential sector, but also in alternative sectors such as co-living, student housing, and others. This comprehensive growth creates a vibrant ecosystem that caters to the needs of a growing workforce and businesses of all sizes.
As Hyderabad continues to invest in infrastructure, attract talent, and build a dynamic business ecosystem, its office market shows no signs of slowing down. This growth trajectory positions Hyderabad as a frontrunner in the Indian office space market, offering a vibrant and fertile ground for businesses of all sizes to flourish.
