Hyderabad sees 53% leases of above 1L-sft office space in 2022

Hyderabad: About 53 per cent of the office space transactions were recorded in segment of above one lakh sft in Hyderabad, as per the latest report of international property consultancy Knight Frank India. According to it, an estimated 25 per cent leases were witnessed in the segments below 50,000 sft and 22 per cent were in between 50,000 sft to one lakh sft.

Amongst the three office configuration categories, Hyderabad witnessed cumulative deals of 120 in the previous year. About 83 deals were recorded in below 50,000 sft office spaces, 22 were in spaces between 50,000 – one lakh sft and 15 were in the spaces above one lakh sft. The office space leases above one lakh sft remained high in the IT office locations of the city.

Hyderabad, Pune and Bengaluru topped the list of cities in the above one lakh-sft segment across the country. Global IT and manufacturing companies in these cities pushed demand for large-sized offices. Ahmedabad, Delhi-NCR, and Mumbai witnessed higher traction for offices in the 50,000-one lakh sft category, with over 30 per cent of transactions in this segment.

An estimated 53 per cent of office leases transacted were for spaces measuring one lakh sft in Pune, while it was 51 per cent in Bengaluru. In Kolkata (70 per cent) and Chennai (57 per cent) majority of office space transactions were for office sizes below 50,000 sft.

Shishir Baijal, CMD of Knight Frank India said, "Office leasing volumes in 2022 recorded at over 51 million sq. ft, which was historically the second best. Within this, IT/ITeS driven markets of Bengaluru, Hyderabad and Pune, saw more than 50 per cent of their total office leasing by occupiers taking in excess of one lakh sft.

The large space take up are usually for value driven services such as R&D and GCCs, which is a sign of India's continued prowess in this area. We expect the momentum of office transaction to remain largely in line for 2023."