Hyderabad’s commercial market has been booming. It has shown exceptional performance since 2020 and is accelerating in terms of office transactions. In 2024, it recorded a 17% annual growth. Additionally, the addition of new office spaces has reached an all-time high. These details were revealed in Knight Frank India’s latest report.
The report highlights that the growth in Hyderabad’s market is attributed to several factors, including the exceptional quality of life and state-of-the-art infrastructure, which have attracted both national and international companies to the city. The residential market in Hyderabad also recorded a 12% growth, with 36,974 units sold in 2024. Due to strong economic fundamentals and the progress in infrastructure, the city achieved all-time high sales in 2024. However, new residential launches saw a 6% decline, with only 44,013 units being supplied in 2024. Meanwhile, home prices increased by an average of 8%.
The office market in Hyderabad has been exceptional, with office transactions achieving a 17% growth in 2024. A total of 10.3 million square feet of transactions were recorded. The new supply of office spaces reached an all-time high, with a 139% growth, totaling 15.6 million square feet. Additionally, Global Capability Centers (GCCs) performed well, contributing to 49% of the total office transactions. GCCs accounted for 9% of the total office leasing in 2024. The transactions by flex space operators also saw a significant 79% growth.
However, with the availability of new space, vacancy rates have slightly increased. Vacancy in 2023 stood at 14.9%, and in 2024, it rose to 18.3%. In high-demand areas such as Hi-Tech City, vacancy remains low, below 10%. Hi-Tech City remained the leader, with 77% of total leasing transactions in 2024.
Joseph Thilak, National Director of Knight Frank India, mentioned that Hyderabad continues to be a preferred location for GCCs and is becoming increasingly attractive to MNCs as well.
In residential sales, Hyderabad’s real estate market made history in 2024 by registering sales of 36,974 units, marking a 12% annual growth compared to 2023. However, new launches in the Hydra sector saw a 6% decline, with only 44,013 units launched last year. On the other hand, prices saw an average increase of 8%. The average price in the city was recorded at Rs 5,974 per square foot. The highest price increase was observed in LB Nagar, with an 11% growth (Rs 7,307), while Kompally saw a 10% rise (Rs 6,220).
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