Hitec City emerged as the dominant force in the leasing market in Q2 2023, capturing an impressive 84% share of the city’s total leasing activity.
Post Dates – Thursday 23rd at 5:20pm – July 6th
Hyderabad: Hitec City emerged as the dominant force in the leasing market in Q2 2023, accounting for an impressive 84% share of the city’s total leasing activity, according to real estate consultancy Colliers India.
One of the notable trends in the Hyderabad market is the sharp rise in the share of flexible space in total leases. Flexible space accounted for 17% of leasing activity in Q2 2023, a sharp increase from just 3% in the same period last year.
The rise in demand for flexible workspaces indicates a shift in occupant preferences, who are increasingly attracted to the flexibility, agility and cost-effectiveness that such spaces offer.
However, alongside the positive leasing trends, Colliers reported an increase in vacancy rates, up 470 basis points year-on-year. Despite the surge in prices, experts predict that levels will remain range-bound for the next quarter, suggesting a stable market.
Across India’s six largest cities, office demand grew year-on-year2, reaching 14.6 million sq. ft. in Q2 2023. Bengaluru and Chennai lead demand, each accounting for 23% of total leasing activity.
“As demand improves in the second half of the year and the market stabilizes further, developers are likely to speed up project completions,” said Vimal Nadal, Senior Director and Head of Research, Colliers India.
Rent trends in major cities remained relatively stable, with little change in average rents. Hyderabad rents remained unchanged at Rs 73.6 psf per month in Q2 2023 compared to the same period last year. Stability in rental prices indicates a balance between supply and demand in the market.
