Hyd sees highest new office completions
The Pearl City witnessed 255% growth in office space transactions at 2.9 mn sq ft during Q3 2023 against 0.8 mn sq ft in Q3 2022, says Knight Frank India report
Hyderabad has recorded the highest new office completions with 5.3 million sq ft during Q3 2023, accounted for 46 per cent of the office space delivered during the quarter across the leading eight markets in the country, says a report. It has seen 58 per cent growth in Q3 2023 when compared to 3.3 million sq ft in the same quarter previous year.
As per property consultant Knight Frank India’s report ‘India Real Estate Q3 2023’, Hyderabad has observed 255 per cent growth in office space transactions at 2.9 million sq ft of office space transactions during Q3 2023 against 0.8 million sq ft in corresponding quarter last year.
Hyderabad market has scaled a near three-year high in terms of quarterly transacted volumes on the back of the long-awaited supply which came online during the quarter. The average transacted rent of the city remained stable at Rs 65.3 per sq ft a month during this quarter.
The major leasing activity was recorded by Global Capabilities Centers (GCCs) transacting 75 per cent of the total area transacted during Q3 2023. The city accounted to 31 per cent of the consolidated GCC area transacted area in the country.
Flex office spaces constituted 13 per cent of the total volume transacted which was then followed by India Facing Business and Third Party IT Services transacting 10 per cent and 2 per cent area respectively.
Across the leading eight cities of India, new office completions have reduced marginally to 11.5 million sq ft in Q3 2023 from 11.6 million sq ft in same quarter last year. The office space transactions in top eight markets recorded 17 per cent increase at 16.1 million sq ft during Q3 2023 over 13.8 million sq ft in a year-ago period.
The elevated demand in the office market reflects the confidence of occupiers as India continues to see economic stability despite global uncertainties. Shishir Baijal, CMD, Knight Frank India said, “The relative strength of the Indian economy continues to attract global corporate interest and is reflected in the recovering demand in the Indian office space market.”
“The increasing incidence of GCCs being set up in the current quarter also points toward greater occupier commitment to the overall operational and business environment that India offers. Occupier demand has trended up well over the year and looks to be on course to exceed levels seen in the previous year. It is the broader economic forces of inflation and GDP growth that will take centre-stage in shaping the fortunes Indian office market in the next few month,” he added.
