HYDERABAD: Hyderabad has surpassed Bengaluru in the new office space addition in the first half of the financial year 2022-23, by posting a growth of 1.8 times compared to the year-ago period.
"With 8.2 million square feet of new office space added in Hyderabad in H1FY23, the city accounted for 34 per cent of total new office supply across the top seven cities, followed by Bengaluru and NCR at 26 per cent and 21 per cent respectively," said India Office Market Update H1 FY23 report of Anarock Property Consultants.
The report said the India Office Market witnessed robust new office supply across the top seven cities in H1FY23 totalling 23.85 million square feet, which is a seven per cent rise against the first half of FY22.
"The occupiers who are evolving and strengthening their businesses are driving the high demand for new office space. The share of southern cities (Bengaluru, Hyderabad, and Chennai) continued to be the dominant region in H1FY23, accounting for 66 per cent of total new office supply across the top seven cities (about 15.85 million square feet),” it said.
The northern market — National Capital Region (NCR — came second at 4.9 million square feet, accounting for 21 per cent of total office supply. The western markets — Mumbai Metropolitan Region (MMR) and Pune — infused around 3.1 million square feet (13 per cent) of the new office supply, the Anarock report said.
It said the net office space absorption increased considerably across the top 7 Indian cities, increasing by 76 per cent to 18.96 million square feet in H1FY23 from 10.76 million square feet in H1FY22 on the back of pent-up demand driven largely by technology and co-working space providers.
Bengaluru witnessed highest office space transactions on a pan-India basis, accounting for 32 per cent of the total, or 6.08 million square feet – gradually reaching closer to the pre-pandemic peak in H1FY19.
The southern office markets — Bengaluru, Hyderabad and Chennai — contributed more than half (approximately 59 per cent or 11.21 million square feet) of India’s net office absorption.
The western markets absorbed 24 per cent of the total office space (approximately 4.55 million square feet) and the northern region 15 per cent (2.9 million square feet). The eastern office market – Kolkata — had the lowest share of net office absorption with two per cent (approximately 0.2 million square feet).