Hyderabad to emerge as market leader in office sector

Hyderabad: After an average performance in April-June (Q2) of 2021, Hyderabad emerged as one of the resilient cities in terms of demand supply dynamics during July-September (Q3) of 2021. For the first time, Hyderabad had the maximum share in leasing volume at 2.5 million sq ft surpassing Bengaluru, as occupiers focussed on large block deals and even leasing entire buildings.

As per a report by Colliers, BFSI and flexible workplace sectors had the maximum share in leasing volume accounting for 66 per cent of the total demand in Hyderabad. Rai Durg saw the maximum leasing traction accounting for 53 per cent of the demand, while Hitec City contributed 40 per cent. On a year-to-date (YTD) basis, Bengaluru continues to be the market leader. The top six cities of India noted about 10.3 million sq ft of office gross absorption in Q3 2021. IT sector driven cities Hyderabad, Bengaluru and Pune accounted for 62 per cent of gross absorption in Q3 2021. With employees returning to workplaces, the office market is showing signs of revival.

"The quarter has brought in much-needed cheer for the market. Large deals made a comeback, led by demand from flexible workspace operators. Decision-making by occupiers has become quicker than in 2020. We can expect the optimism to strengthen over the upcoming quarters, provided there is no third wave," said Ramesh Nair, CEO- India and MD-Asia of Colliers.