Record growth in office space absorption in Hyderabad: Survey

HYDERABAD: Hyderabad has witnessed record growth in office space absorption in the April-June quarter at 2.4 million square feet. This is the 90 per cent growth over the office space absorption in Q2 2021, said a survey.

According to a report, ‘The Connect Q2 2022,’ released by commercial real estate firm Vestian, “The West peripheral business district market, comprising locations such as Madhapur, Gachibowli, Raidurg and Nanakramguda, continued to lead the office demand chiefly because over 90 per cent of the Grade A office space preferred by the IT/ITeS sector and others is located in the region.”

The report also said that the share of the coworking operators' segment, which has increased since 2021, recorded a 24 per cent growth in the January-June period. In its outlook for the July-December period, the report said the office market space held good potential to regain momentum.

“While the pandemic continues to make its presence felt, and uncertainties regarding the supply chain hiking construction material prices will continue to be of concern in the short term, the strong fundamentals ruling the market will prove resilient enough,” said Dr Shrinivas Rao, the CEO of Vestian. The office space market could benefit from the emerging alternative asset classes such as data centres and the life sciences sector in the forthcoming period.

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