Hyderabad's office leasing grows 75% in Q1 2022: CBRE

Hyderabad: Office space sector in Hyderabad continued to witness a robust recovery in January-March quarter (Q1) 2022, as total office leasing activity grew by 75 per cent year-on-year (Y-o-Y) to touch 1.4 million sft, led by technology corporates (90 per cent) and flexible space operators (7 per cent) as per real estate consulting firm CBRE South Asia Pvt Ltd.

According to its latest office report 'CBRE India Office Figures Q1 2022', overall office leasing in Hyderabad was led by tech sector. Among the office space supply, SEZ spaces and development completion absorption accounted for around 74 per cent and 79 per cent respectively. The key sectors driving the absorption included technology corporates with 90 per cent share and flexible space operators with 7 per cent.

South Indian cities - Bangalore, Hyderabad and Chennai dominated development completions, accounting for a cumulative share of about 70 per cent.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE said, "With the government's evolving Covid-19 protocols and the recovery in office leasing in 2021, we expect the positive momentum to further strengthen in 2022. We continue to witness a pickup in long-term decision-making by occupiers, aided by 'return-to-work' strategies, thereby accelerating project completions."

Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India said, "As economic recovery continues to gain momentum, we expect the increase in leasing activity to bring a new focus on large-sized and high-quality buildings by developers to differentiate their assets and attract occupiers. We also expect large institutional players to continue with greenfield investments via JVs/ partnerships/ platforms or brownfield investments via REITs, which in turn would also boost the upcoming supply in the coming years."

Romil Dubey, Director, Advisory & Transaction Services, India, CBRE South Asia, said, "Occupier interest continued to drive office momentum in Hyderabad. Observing a strong leasing trend, we expect the momentum to continue and attract larger occupiers and witness sizable office space take-ups in 2022."