56% growth in Hyderabad
14% increase in six cities
Colliers India report reveals
Hyderabad is seeing a remarkable surge in office leasing. The demand for office space remains strong, with Grade-A office space leasing increasing by 56% this year, reaching 12.5 million square feet. This was revealed in a report by Colliers India. The leasing volume last year was 8 million square feet.
In six major cities across the country, office space leasing has increased by 14%, reaching 66.4 million square feet this year, compared to 58.2 million square feet last year. The report highlights that technology, engineering, manufacturing companies, as well as financial services companies, have been driving the increased demand for office spaces this year.
Arpit Mehrotra, Managing Director of Colliers India’s Office Services division, estimates that office space leasing will continue at peak levels through 2025. Leasing is expected to exceed 60 million square feet annually for the next few years. A consistent demand from Global Capability Centres (GCCs) is one of the contributing factors, he stated.
City-wise, office space leasing in Bengaluru reached 21.7 million square feet, a 39% increase compared to last year’s 15.6 million square feet. In Mumbai, leasing grew by 43%, reaching 10 million square feet, while Pune saw a 4% increase, reaching 5.7 million square feet. Chennai experienced a 35% decline, with leasing dropping from 10.5 million square feet to 6.8 million square feet. In the Delhi NCR region, leasing decreased by 16%, reaching 9.7 million square feet.
On the other hand, logistics and industrial (L&I) facility leasing across the eight major cities in the country is expected to reach 50-53 million square feet by the end of the year, according to Cushman & Wakefield. The logistics and industrial leasing volume across cities like Hyderabad, Bengaluru, Chennai, Kolkata, Pune, Ahmedabad, and the Mumbai Metropolitan Region (MMR) was 53.57 million square feet last year. By October this year, leasing in these cities had surpassed 41 million square feet.
