Office space: West Hyderabad tops chart
Hyderabad: The Covid-19 pandemic and its adverse impact on the world held back Hyderabad from pulling away a sizeable chunk of Bengaluru’s corporate clientele, especially the ones that were looking for large format office space.
According to a report released by the Vestian, a commercial real estate service provider, Hyderabad witnessed extraordinary office traction in 2019, touching an all-time high absorption of 11.5 million sqft. With this positive trend, hopes abounded regarding the office market pulling away a sizeable chunk of Bengaluru’s corporate clientele.
The report also said that most of the city’s office market clientele had their headquarters in the United States and European countries. Adding that, with these parts of the world being one of the worst hit due to the Covid-19 pandemic, the demand for office space in the city shrunk.
As per the research done by Vestian , in 2021, the gross office space absorption in Hyderabad was 6.96 million sqft depicting a growth margin of 8% compared to 2020. In the first half of 2022, total absorption was recorded at 4.4 million sqft, depicting a growth of 72% over the absorption in first half of the year 2021.
The Peripheral Business District (PBD) in West Hyderabad, comprising of Madhapur, Gachibowli, Raidurg, Nanakramguda and other areas continued to lead the office space demand. The reason for demand in these areas is due to the presence of Grade A office spaces, that are preferred by the IT/ITeS sector.
Another observation made by the Vestian was that several IT/ITeS companies have postponed their expansion plans during the pandemic and many of them opted to take up space in co-working/managed offices as a business continuity measure.
Showing the signs of a strengthening real estate market, the city’s share of total office absorption in 2019, before the pandemic struck, was pegged at 20%, which remained at a fair 16% share in the first half of 2022, depicting gradual revival.
