Hyderabad Set to Expand Business Parks with 35-38 Million Sq. Ft. by 2023-2025: CBRE India Report
Hyderabad December 11
In a comprehensive analysis, CBRE South Asia Pvt. Ltd highlights Hyderabad’s remarkable real estate growth trajectory, offering insights into trends, outlooks, and overall development in the office and residential sectors.
The report forecasts a significant addition of 35-38 million square feet of high-quality business parks in Hyderabad’s primary micro-markets over the next two to three years. Fueled by a thriving business environment, the city has attracted global corporations, establishing outsourcing centers, back offices, research and development (R&D) facilities, and regional headquarters.
The rising demand for office spaces, particularly along the city’s IT Corridor and Extended IT Corridor, has led to a substantial supply surge since 2019. Hyderabad’s investment-grade office stock surpassed 100 million square feet in 2022, reaching 119 million square feet by the end of the Jul-Sep ’23 quarter—an impressive 63% increase from the 73 million sq. ft. stock in 2019. The city claimed a spot among the top 3 cities dominating office space leasing in Jan-Sep ’23, registering a 35% year-on-year increase at 6.6 million sq. ft. Key sectors driving absorption included Life Sciences, BFSI, and technology.
While concerns about global headwinds persist, a gradual return-to-office acceleration is expected to boost leasing momentum in the city. With established infrastructure, occupiers are likely to focus on the IT Corridor for their office requirements. Simultaneously, the growing supply in the Extended IT Corridor offers more options, allowing businesses to leverage comparatively lower rentals.
Cyril Solomon weighs in on the trends, emphasizing the significance of #OfficeSpaces, #CRE, #RealEstate, #CBRE, #Technology, #Tech, and #India in this dynamic landscape.
