Hyderabad holds a prominent position in the Indian office space market.
City demonstrated a strong YoY growth of 17.71% in transactions for office spaces larger than 100,000 square feet, thereby solidifying its standing as a thriving business hub in India.
A report on Hyderabad’s outstanding performance in the commercial real estate market was released by Knight Frank India. The city maintained its status as a thriving business hub in India by showing a strong 17.71 percent year-over-year (YoY) growth in transactions for office spaces exceeding 100,000 square feet in the third quarter of 2023.
According to the report, in Q3 2023, Hyderabad accounted for 23.58% of all transactions in the large office space segment in India’s top eight markets.
Notable is Hyderabad’s steady increase in office asset transactions, with three office space segments showing encouraging trends. When it came to large office spaces—those larger than 100,000 square feet—Hyderabad saw an extraordinary increase in sales. From 290,000 square feet in Q3 2022 to 341,364 square feet in Q3 2023, the total area transacted in this segment increased, indicating a significant YoY growth of 17.71 percent.
Moreover, with a 3.49 percent YoY increase, mid-sized office spaces—which span from 50,000 to 100,000 square feet—also showed encouraging trends. From 66,000 square feet in Q3 2022 to 68,304 square feet in Q3 2023, the transaction area in this category increased.
Even the smallest office spaces—those measuring less than 50,000 square feet—saw a noteworthy YoY increase in transactions, rising by 15.44%. In Q3 2023, 23,112 square feet were transacted in this segment, up from 20,021 square feet in Q3 2022.
In Hyderabad’s office space market, significant leasing activity was noted in the third quarter of 2023. Leading the pack were Global Capabilities Centers, India Facing Business, Flex Office Spaces, and Third Party IT Services.
