According to CBRE figures, Hyderabad is among the top three cities in India for office space absorption in Q2 of 2022. 2.6 million square feet were devoted to new office spaces in the city.
Several major transactions also took place in the city, including Qualcomm leasing 1.1 million square feet in CommerZone Wing 1, and PwC leasing 0.35 million square ft in My Home Twitza, and Legato leasing about 0.33 million sq. ft in Vance Business Hub (H9).
Approximately 53 percent of the space leasing was driven by engineering and manufacturing firms, 16 percent by life sciences, and 15 percent by banks and financial services. SEZ spaces accounted for 69 percent of the absorption during the quarter, which was dominated by small deals. Additionally, 22% of the new office spaces were occupied by IT spaces, and 9% by non-IT spaces.
Across major Indian cities in Q2 of 2022, leasing activity jumped 61 percent q-o-q to reach the highest quarterly absorption of 18.2 million square feet ever recorded. Over 26.1 million square feet of new office space were constructed in the first half of 2022 – a 26 percent increase year-over-year.
“The leasing activity indicates that employees are returning to work with a flexible approach. The addition of supply in Hyderabad was particularly noteworthy, as the city’s stock reached 100 million square ft. during the quarter,” CBRE chairman and CEO (India, South-East Asia, Middle East & Africa) Anshuman Magazine said.
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Few other observations
It is worth noting that the transaction activity in 2022 will be driven by Bengaluru, Delhi-NCR, and Hyderabad. There will also be an improvement in leasing volumes in Mumbai, Pune, and Chennai as well
Take-up of space will be attributed to pent-up demand and expansion & consolidation requirements of occupiers.
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