· 1.49 crore sft of office space enters the market
The city of Hyderabad ranked number one in supplying the office so far during the financial year 2023 providing 1.49 crore office space, followed by Bangalore with 6% share of the office space supply (1.26 crore sft), according to a report from the ANAROCK consultants. During 2022, the office space supply was only 1.18 crore sft but the quantum of the office space transacted pertained to 78.5 lakh sft. In Bangalore, the supply was 1.45 crore sft and the transactions carried out pertained to 76 lakh sft.
In the seven main cities of the country, the total office space available in the market was 4.86 crore sft in 2023. The number of transactions conducted pertained to 3.61 crore sft. Compared to the previous year, there was decrease in availability of the office space but an increase in the number of transactions. In 2022, a total of 5.12 crore sq.ft has been supplied to the market, but the number of transactions carried out pertained to 3.40 crore sq.ft. However in 2023, the office space supplied to the market so far was 88.2 lakh sft, the MMR figured at the other end of the spectrum with mere supply of only 41.8 lakh sq. feet. This is 46 % less compared to the supply in the previous year.
In 2023, Hyderabad ranked number three in the number of transactions carried out for the sale of office space. The total number of transactions carried out was 68.8 lakh sft following Bangalore (98.9 lakh sft) and NCR-Delhi (68.9 lakh sft). Hyderabad has topped the list in Grade-A office space vacancies. Barring the city, all other cities recorded decrease in the availability of Grade-A office space. On annual basis, the Grade-A office vacancies have increased by 0.5%, while the rest of the six cities recorded a decrease ranging between0.1% to 0.5%. the Mumbai Metropolitan Region recorded a decrease of 0.5%, followed by Kolkata (0.4%), Pune(0.2%), Bangalore, Chennai, NCR-Delhi (o.1%).
The rents for office space have increased by 4% during the past one year. City-wise, Pune and Bangalore have registered the highest growth in rents. While Pune accounts for 10% growth, Bangalore accounts for 9% growth in rents. The growth of rents in Hyderabad was put at 7%. Mumbai Metropolitan Region accounted for the highest rent of Rs 132 per sft, while Bangalore accounts for Rs 85 per sft, NCR Rs 82 for sft, Kolkata accounts for Rs 54 per sft.
