Tech corporates dominate office leasing in Hyderabad

Hyderabad: Office space absorption in Hyderabad stood at 2.4 million sq ft while supply stood at 3.8 million sq ft in October-December quarter (Q4) of 2022, says real estate consulting firm CBRE South Asia Pvt Ltd's in its latest report 'CBRE India Office Figures Q4 2022'.

According to the report, technology (35 per cent), Banking, Financial Services and Insurance (14 per cent) and engineering & manufacturing (12 per cent) are the key sectors that drove office space absorption in the city during Q4 of 2022.

As per the report, the office space take-up was witnessed across IT, non-IT and SEZ segments with a share of 48 per cent, 27 per cent and 25 per cent respectively. Moreover, the report further highlighted that Hyderabad office space was driven by small-sized (less than 50,000 sq ft) deals.

Some of the main transactions recorded during Q4 2022 in the city include Netcracker Technology leased 2 lakh sq ft in DivyaSree Tech Ridge P2 (Phase 2), IDFC First Bank leased 1.8 lakh sq ft in Aurobindo Galaxy and UrbanDesk leased 1.3 lakh sq ft in Gowra Palladium (Phase – 1).

The report find that the office sector in India witnessed gross absorption of 56.6 million sq ft during 2022, registering a growth of 40 per cent (Y-o-Y), marking the second-highest leasing activity ever after it touched the peak in 2019 with 65 million sq ft.