The Hyderabad office market is currently witnessing exceptional growth, driven by increasing demand from both domestic and international companies. According to the latest Cushman & Wakefield report, the gross leasing volume (GLV) for H1 2024 (January-June 2024) is projected to reach an impressive five million square feet (msf). This marks a significant increase of nearly 40 per cent compared to the 3.6 msf recorded in H1 2023. Such positive momentum is attracting a wave of companies to Hyderabad, firmly establishing it as a leading business destination.
Real estate experts indicate that this surge in the market coincides with the political shift following the Congress government’s rise to power in December 2023, which appears to have stimulated a boom in the city’s real estate sector.Several factors are contributing to Hyderabad’s robust office market growth. The city offers a favourable business ecosystem, underpinned by continuous infrastructure upgrades, a supportive regulatory environment, and political stability. Coupled with cost-effective real estate options and a readily available pool of skilled talent, Hyderabad presents a compelling value proposition for investors, occupiers, and leading real estate developers.
The demand for office space is particularly strong for high-quality Grade-A buildings. This trend reflects a clear preference among businesses for modern work environments that support expansion plans, operational consolidation, and the evolving needs of a contemporary workforce. The Cushman & Wakefield report highlights this shift, noting that businesses are increasingly seeking sophisticated office spaces that align with their growth strategies.The surge in office leasing is creating positive ripple effects beyond the commercial sector. It is fuelling demand in the residential sector and alternative housing markets, such as co-living and student housing. This comprehensive growth fosters a vibrant ecosystem that meets the diverse needs of a growing workforce and businesses of various sizes.Hyderabad’s continued investment in infrastructure, talent attraction, and the cultivation of a dynamic business environment positions its office market for sustained growth. The city’s upward trajectory underscores its emergence as a frontrunner in the Indian office space market, offering fertile ground for businesses to thrive.
