Office space demand in Hyderabad surges to highest level in 5 years

BENGALURU: Demand for office space in Hyderabad outpaced supply in 2016, surging to the highest level since 2011 as large multinational firms expanded their presence in the city.

According to property consultancy firm Colliers International, about 5.6 million sq ft of office space was leased in the city during the year, up 37% from a year ago. In contrast, only about 2.3 million sq ft of new office space came up during the year.

“Hyderabad’s office market is in transition and property owners have aggressively increased rents in 2016 as available office space diminished with massive expansion by IT occupiers. In the short term, supply should complement demand,” said Surabhi Arora, senior associate directorresearch at Colliers International. Pre-let activity was driven mainly by IT-ITeS, banking and financial services occupiers booking space in properties scheduled for completion in coming quarters.


Some of the companies that expanded operations in the city recently include Apple, Google and Amazon. “The demand for office space is very strong in Hyderabad and we have leased 1.6 million sq ft last year,” said Bijay Agarwal, managing director, Salarpuria Sattva