The absorption of office space in Hyderabad has grown dramatically this quarter, even surpassing Bangalore. In a Report by Anarock, between April and September 8.2 million Square feet have been absorbed in office space. overall India’s office space contribution, Hyderabad accounted for 34%, followed by Bangalore with 26% and Delhi with 21%.
Surprisingly there has been an 82% increase in this quarter in office occupancy.
But What made Hyderabad so special to others?
Well it is the low cost of living and friendly weather
Some significant reasons why office space has been increased.
Back to work from the office
Work from Office has now been shifted to hybrid or onsite, as the Covid restrictions have been eased and are no longer affecting people. Having employees work from the office has its advantages for employers as well. Meetings and group work can be easily set up. Hiring new candidates is uncomplicated.
Some of the sizable leases include Qualcomm ( 1.10 million square feet), PwC (0.35 million square feet), and others.
The Information Technology sector accounts for the majority of Hyderabad’s economic growth. Over the past two decades, these conditions have been favorable and expanding. A growing number of small companies are joining MNCs in establishing their presence.
Over the past two years, startups have become the main occupants of office space. Hyderabad’s startup ecosystem has greatly benefited from THUB, which was started by the Telangana Government to help convert ideas into products.
The manufacturing sector is the second largest contributor to occupancy. Mainly warehouses and large godowns are the ones that got occupied.
Co-working is the new concept of office working without lending an office space. This has been in trend since the pandemic broke out and outshine numerous booking, especially from small companies and startups
Hyderabad office space growth
The main reason for this growth is the transition from Working from home to Working from the office. After the pandemic, most of the office spaces that were left empty are now filling as the pandemic was eased out. In addition to the above point, new startups were also occupying some space.
There is no other miracle happening in Hyderabad, and some rumors are that Hyderabad is surpassing Bangalore in IT’s growth.
Let us discuss those in another blog