Hyderabad Emerges as Second-Largest Office Space Supply Market in India
Hyderabad is poised to become the second-largest office space supply market in India, after Bengaluru, according to a report by CBRE South Asia Pvt. Ltd. The report, titled “Office Space Revolution,” reveals that office supply completions across the country’s top seven cities are projected to exceed a staggering 165 million square feet between 2023 and 2025, marking a substantial increase from the 142 million square feet recorded during the 2020-2022 period.
Hyderabad is expected to contribute 20% of the total new office space supply in India during this period, or 33 million square feet. This will make it the second-largest office space supply market in the country, after Bengaluru, which is projected to contribute 29%.
The report attributes the strong growth in Hyderabad’s office space supply to the city’s emergence as a major hub for the IT, BFSI, and pharmaceutical sectors. The city is also home to a number of multinational companies and startups.
The report also highlights the fact that Hyderabad is a relatively affordable city, with lower office space rents than other major Indian cities such as Bengaluru and Mumbai. This is making the city an increasingly attractive destination for businesses looking to expand or relocate their operations.
The robust growth in Hyderabad’s office space supply is expected to have a positive impact on the city’s economy and job market. The report estimates that the new office space completions will generate over 300,000 jobs in the city.
The report’s findings are positive news for the Indian real estate market as a whole. The country’s substantial supply completions indicate a positive outlook for the industry, with average annual office supply increasing by 17% and average building size by 18% from 2020 to 2022. The growth is projected to accelerate further by 15-18% from 2023 to 2025, driven by strengthening occupier demand and developers’ expansion plans.
India is expected to remain a key global destination for setting up Global Capability Centres (GCCs) across various sectors, thanks to its cost and scale advantages.
