Hyderabad's Office Space Leasing Soars by 46% in Q1 2024, Reflecting Robust Demand
In an impressive display of commercial real estate dynamics, Hyderabad has reported a remarkable 46% surge in office space leasing during the first quarter of 2024, with the volume reaching 2 million square feet. This surge is significantly higher compared to the corresponding period in 2023, as detailed in the latest CBRE India Office Figures report for Q1 2024.
This growth in Hyderabad's office leasing activity is predominantly driven by the Information Technology (IT) sector, which accounted for 70% of the total leased space, despite only 34% of the supply being allocated to this segment. The data underline a strong demand for commercial spaces within the city, indicating a burgeoning requirement for office setups amid the city's expanding business landscape.
Comparatively, across nine major Indian cities, the office sector experienced a total gross absorption of 14.4 million square feet during the same period, marking a slight 3% decrease year-on-year. Bengaluru led the chart for office leasing activities, followed closely by Delhi NCR and Hyderabad, which collectively contributed to 65% of the total leasing volume. The report highlighted that nearly half of this quarter’s leasing activities were driven by corporate expansions across these cities.
Anshuman Magazine, the Chairman of CBRE for India, South-East Asia, Middle East, and Africa, shared an optimistic economic outlook amidst the global challenges and rising interest rates. He emphasized that the Indian economy continued to exhibit growth throughout 2023 and is expected to maintain this trajectory into 2024, buoyed by ongoing reforms, private investments, and infrastructure development. This optimistic perspective bodes well for the future of office space leasing in Hyderabad, hinting at sustained growth and opportunities within the city's commercial real estate sector.
The significant increase in office space leasing in Hyderabad during Q1 2024 reflects the city's growing appeal as a commercial hub, especially for IT and corporate sectors looking to expand their footprint. With the Indian economy's resilience and the anticipated continuation of growth, Hyderabad's commercial real estate market is set for a promising future, offering ample opportunities for businesses and investors alike.
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In the first quarter of 2024, Hyderabad experienced a significant 46% increase in office space leasing, reaching 2 million square feet, as reported by CBRE India. This growth is largely attributed to the IT sector, which accounted for 70% of the demand despite a limited supply. The overall office sector across nine major Indian cities saw a slight decline, yet Hyderabad, along with Bengaluru and Delhi NCR, led the demand, indicating a robust market driven by corporate expansions. Anshuman Magazine of CBRE highlighted the resilient growth of the Indian economy despite global challenges, suggesting a positive outlook for Hyderabad's commercial real estate sector. This trend underscores Hyderabad's emerging significance as a commercial hub, promising opportunities for businesses and investors.
