Hyderabad has become the top city in India’s office space market, with a significant increase in leasing and new supply. According to a report by Vestian, office space absorption in Hyderabad increased by 270% during the July-September quarter, reaching 3.7 million square feet. At the same time, new office space supply rose by 175%, totaling 5.5 million square feet.
On the other hand, Bengaluru experienced a decline in office space absorption, with a 28% decrease totaling 3.6 million square feet. The new supply in Bengaluru also dropped by 25%, amounting to 2.7 million square feet during the same period.
The report, which covered the top seven cities in India, revealed a 21% growth in office leasing and a 26% increase in new supply during the third quarter of the year.
CEO of Vestian, Shrinivas Rao, highlighted that the office sector in India experienced high activity during Q3 2023, with the highest absorption levels since the pandemic and an increase in new completions. He also predicted a potential rise in rentals in Southern cities, including Hyderabad, as more large corporations encourage their employees to return to office spaces, indicating a resurgence in demand.
