Hitech city top in leasing

The Hitech City area of Hyderabad maintained its supremacy in Grade A office leasing. In the first quarter of 2023, 76 percent of the total leasing is held by Hi-Tech City. New office supply in Q1 2023, is steady at 2 million square feet. New supply has come largely with earlier commitments in the Financial District and Hitech city. As this is likely to increase further in the coming quarters, the office space vacancies are expected to grow exponentially. Further details regarding Hyderabad in a report released by Colliers on Office Outlook, include:

• 91.5 million sq.ft of office stock by the first quarter of 2023
• 2.9 million sq.ft of space coming up in Q2. Commercial spaces account for 8 percent of this, while the remaining 92 percent is controlled by IT sector.
• Office rents range from Rs.35.9 to Rs.77.7 per sq.ft per month.

Looking at the pan-India Grade A office market, the stock in Q1 2023 was 667.2 million sq.ft, with 16.4 percent office space vacant.

The average rent is Rs.95.1 per sq.ft per month. Looking at leasing shares across the country in Q1 2023, Bengaluru is at the top with 32 percent. Delhi (22 per cent), Chennai (15 per cent), Hyderabad (13 per cent), Mumbai (10 per cent) and Pune (8 per cent) followed. Considering the new supply details, Bengaluru is at the top with 42 percent share, while Hyderabad is at the second position with 25 percent share. Delhi (13 percent), Chennai (9 percent), Pune (7 percent) and Mumbai (4 percent) followed.