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Demand for co-working space goes up!

Besides the IT and ITES sectors, demand for co-working space has multiplied significantly in Hyderabad. Cyril’s latest study has revealed that the demand for the co-working space will increase in future. Companies like ZF Phoenix, Legato, PWC, IDFC, iSprout, Goldman Sachs, LTI, Gain Sight, H&R, Blue Jay have leased space in various IT complexes in the city.

In all, 52-lakh Sft of commercial space is expected to be leased by companies in the first half of 2022. Compared to space leased out prior to the pandemic situation, the companies are taking more and more space on lease. While the IT sector has the highest demand, the demand for financial services and engineering leasing manufacturing sectors is limited to 20% and 10% respectively. Co-working operators own about 15% stake. The demand is highest in Madhapur and Gachibowli. Around 95,00,000 Sft of Grade-A office space has been leased to several companies in the first half of 2022. The rent remained more or less stable in the micro market. In Madhapur, many developers have hiked rent due to the lack of Grade-A land. By 2023, a commercial complex of approximately 1.10 crore Sft will be available in Gachibowli.

Coming to the Hyderabad retail market, in the first half of 2022, only about 6,00,000 Sft of space has been taken on lease by various brands. While various companies occupy 20% of the space in shopping malls, 60 % of the shopping complexes on commercial roads are chosen by brands. Clothing and ready-made garments accounted for 45% of the market. West Side, Max, Style Union, Zudio’s have taken the top spot in the first half of 2022. In 2021, 7,00,000 sft of new space has been brought in to the retail sector. Many shopping malls are opening in 2022 with an area of around 10,00,000 Sft. While the rent remained stable in the micro market, the rents of retail complexes in areas like Madhapur, Kukatpally, Banjara Hills, Kondapur and Himayat Nagar have increased significantly.