In 2017, Hyderabad bad may see highest office space absorption

HYDERABAD: Hyderabad is expected to see an office space absorption of approximately 7.5 million square feet this year, its highest ever in a year, on the back of robust demand from occupiers, said global property consultant CBRE.

The southern Indian city, which saw around 6-million sq ft of office space absorption in 2016, witnessed demand from IT/ITeS companies, followed by BFSI and startups, driven mainly by talent pool availability and relatively lower rentals. An increasing absorption year-on-year indicates an improving occupier interest in the Hyderabad market, said property consultants.

In the third quarter this year, Hyderabad market saw an absorption of over 4.5-million sq ft. The city of Nizams saw office space absorption double in the past two years, said CBRE.


“Hyderabad is expected to touch an office space absorption of nearly 7.5 million sq ft which will be its highest ever absorption, and the highest growth in absorption across major cities in India. This absorption will be more than what some of the major cities around the world witness. This is a great indication of occupier interest in the Hyderabad office market,” Anshuman Magazine, chairman, India and South East Asia, CBRE, told journalists at the launch of their new office in Hyderabad on Monday.

The new office of CBRE at Hitec City area will accommodate over 150 employees while the company is looking to double the headcount at its Hyderabad office from the current 720 over the next two years.

Magazine said the robust absorption will create jobs and will help lift the residential market as price imbalance will also even out in the next few years. Occupiers are showing huge interest in the Hyderabad office market, with major tech companies such as Google, Apple, Amazon, Microsoft and Deloitte, among others, picking up large office spaces, and are expanding aggressively.