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2019 Meter: Hyderabad tops in office space deals

Hyderabad has reported an all-time high of 1.2 million square metres (12.8 million square feet) in office segment transactions in 2019, recording a 82% growth over the previous year, said a report of global property consultant Knight Frank.

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Last Updated: Jan 08, 2020, 11.37 AM IST
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HYDERABAD: Hyderabad has reported an all-time high of 1.2 million square metres (12.8 million square feet) in office segment transactions in 2019, recording a 82% growth over the previous year, said a report of global property consultant Knight Frank.

Hyderabad stood first among the top eight Indian cities in the halfyearly transactions at 8.9 million square feet, beating Bengaluru. This is mainly attributed to the increased activity of the IT/ ITeS industry and of the coworking sector. Knight Frank attributes the significant increase in the offtake by IT/ ITeS sector in Hyderabad to the “infrastructure constraints and price rise in cities like Bengaluru that is increasingly encouraging IT/ ITeS companies to consider Hyderabad for their expansion and consolidation of office space.” The Telangana capital city saw a massive increase of 181% in supply of new office spaces at one million square metres (10.9 million sft) in the same period.

The city also overtook Bengaluru in terms of leasing volumes during the second half of last year. The share of IT/ ITeS sector in the office space consumption pie of Hyderabad jumped from 44% in H2 of 2018 to 58% in H2 of 2019. Coworking companies accounted for 0.13 million square metres (1.36 million sft) of office space transacted in Hyderabad during the second half of last year, a significant 15% of the total H2 2019 transactions.

Knight Frank’s chairman and MD Shishir Baijal on Tuesday launched their half-yearly report – India Real Estate – comprising comprehensive analysis of the residential and office market performance across eight major cities for the second half of last year. While the residential project launches in Hyderabad reported a 150% jump year-on-year at 13,495 units, the second half of the year reported a massive 375% jump with a six-year high at 8,065 units.

While ?8-10 million (? 80-100 lakh) ticket-size continues to be the most popular residential segment in Hyderabad, the city recently saw an increase of ?10-15 million (?1-1.5 crore) ticket size apartments by middle and senior management personnel, in a spill over effect of growing office market.

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