Business EconomyPosted at: Feb 27 2025 5:22PM


Hyderabad surges to second spot in India’s Office leasing Market with 52 pc growth in 2024: Report

Hyderabad, Feb 27 (UNI) Hyderabad’s Office Leasing Market touched an impressive, 13.1 million sq. ft. of gross absorption in 2024, securing a 17 percent share among India’s top six cities, according to a report released by Savills India, a global real estate advisory firm.
The IT-BPM sector led the market with 50 percent of total leasing, followed by Healthcare and Pharma (16 percent), Flexible Workspaces (14 percent), and BFSI (7 percent), the report revealed.
Large-scale deals (100,000 sq. ft. or more) accounted for 53 percent of overall leasing, reflecting a 46 percent YOY increase.
The SBD I micro market emerged as the leader, contributing 65 percent of the total leasing activity in Hyderabad.
Key areas such as Raidurg, Hi-Tech City & Madhapur, were hotspots for leasing transactions, with Nanakramguda in SBD II also witnessing significant activity, particularly with new supply additions, the report stated.
The IT-BPM sector maintained its dominance with a two-fold increase in absorption levels from the previous year.
Healthcare and Pharma showed impressive growth with large space take-ups, with the average deal size going up by 58 percent.
Flexible Workspaces recorded 1.8 million sq. ft., followed by BFSI, which accounted for 1.1 million sq. Ft.
Grade-A office spaces in Hyderabad continued to attract significant demand, especially in prime locations within SBD I.
Non-SEZ projects dominated the new supply, representing 83 percent of developments, with SBD II accounting for 73 percent of recent completions.
Leasing activity surged with large deals driving the majority of transactions, complemented by mid-sized deals contributing significantly.
The growth in demand across IT-BPM, Healthcare, Pharma, and Flexible Workspaces underscored Hyderabad’s position as a preferred business destination.
The overall vacancy rate in Hyderabad remained stable at 22 percent by the end of 2024.
Hyderabad witnessed a 24 percent annual increase in average rentals, with select developments in SBD I experienced a 26 percent rise.
Commenting on the Hyderabad Office Market, Sarita Hunt, Managing Director, Bengaluru & Hyderabad said “Hyderabad’s office leasing market has demonstrated remarkable resilience and growth, securing the second spot among India’s top leasing markets with the absorption reaching a notable 13 Mn SFT in 2024. As we look ahead, Hyderabad’s commercial real estate landscape is poised for sustained momentum, with flexible workspaces and GCC’s driving future demand. With an anticipated 12 million sq. ft. of leasing activity in 2025 and a substantial infusion of 15 million sq. ft. in new supply, the city is well-positioned to meet the evolving needs of businesses and strengthen its position as a leading business hub in India.”
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