Hyderabad: Hyderabad recorded 2 million square feet of office space absorption in the April-June period this year. Key sectors that drove the absorption included technology (44 per cent), flexible space operators (25), and banking, financial services and insurance (8 per cent), according to the real estate consulting firm CBRE South Asia in its office report, ‘CBRE India office figures Q2 2023’.
Key transactions recorded in the city during the period include EA Sports (2.50 lakh sq. ft in Nexity Tower 30 and UST Global and London Stock Exchange Group, who have taken 1.2 sq. ft each in the International Tech Park Hyderabad (IIPH), Block A.
The report highlighted that Hyderabad office space absorption was driven by small-sized (less than 50,000 sq. ft.) deals.
On a pan-India basis, the report said, office leasing activity increased by 12 per cent over the previous quarter to 13.9 mn sq. ft. Bengaluru, Chennai, and Pune led the absorption in the quarter, accounting for about 59 per cent of the transaction activity.
Total office space supply stood at 12.4 million sq. ft in the April-June period, an increase of 6 per cent over the previous quarter.
Hyderabad, Bengaluru and Chennai led the supply addition during the quarter, accounting for a cumulative share of 84 per cent.
Similar to the previous quarter, domestic firms continued to lead the absorption in April-June and H1 2023, accounting for 43 per cent and 46 per cent, respectively. This was mainly led by flexible space operators, technology corporations and BFSI firms.
“India is expected to be amongst the world’s fastest-growing economies amidst a likely weakening of global macroeconomic conditions. We believe that the share of domestic firms in leasing would also remain strong during the year,” said Anshuman Magazine, chairman and chief executive officer - India, South-East Asia, Middle East and Africa, CBRE.
“Occupiers continue to focus on bringing employees back to the office, even as hybrid working prevails across most sectors. Benguluru, Delhi-NCR, Chennai, and Hyderabad are expected to drive absorption in 2023, while Mumbai, Pune and Kolkata would also witness robust space take-upm,” said Ram Chandnani, managing director, advisory and transactions services, CBRE India.
Graphic:
City Absorption in million sq. ft
Bengaluru 3.5
Chennai 2.5
Pune 2.3
Hyderabad 2
Delhi-NCR 1.9
Mumbai 1.3
Kolkata 0.2
