Hyderabad Real Estate

Hyderabad witnesses 40% rise in office leasing, reports Cushman & Wakefield

Cushman and Wakefield reports

HYDERABAD: Following the latest report’s analysis in a media report, Chief Minister of Telangana A Revanth Reddy also tweeted on X (formerly Twitter) on Thursday (July 4), that Hyderabad witnessed a 40% surge in demand for both domestic and global office leasing space in the past six months. Revanth Reddy credited the Congress-led state government for this significant growth.

“A boom in Hyderabad’s real estate market in the past six months, with a 40% surge in office leasing demand, is driving growth. This is the result of a silently performing, efficient government focused solely on delivering results. We will reimagine and build Hyderabad for the next orbit in the coming years, creating opportunities for everyone,” Reddy said on X, citing a media report highlighting the city’s remarkable office space leasing growth.

Hyderabad’s real estate market soars

According to the latest report by Cushman & Wakefield, Hyderabad’s projected Gross Leasing Volume (GLV) for the first half of 2024 (H1 2024) is expected to reach 5 million square feet (msf). This represents a substantial increase of nearly 40% compared to previous year. Which is 3.6 msf in H1 2023. The demand for high-quality Grade-A buildings underscores businesses’ preference for modern work environments that support expansion plans and operational needs.

In the residential real estate sector, Hyderabad recorded a 39% annual jump in average residential prices. This is the highest among the top seven cities, according to ANAROCK Property Consultants. This significant increase highlights the city’s growing appeal as a prime residential destination in top cities across the country. Despite such price hike, sales declined from 19.6k units in Q1 to 15.08k units in Q2 of 2024.

The rental real estate market in Hyderabad also saw some minute changes. HITECH City and Gachibowli experienced a rise of 3% in average rents in Q2 2024 compared to the preceding quarter. In Q1 2024, the quarterly average rent hike in these areas was 5%. The dip in rent growth can be attributed to an increase in supply, with more new units entering the market, stabilizing the previously high rental spikes.

Hyderabad is set to complete 34.7k residential units by the end of this year, Which is 20.5k units in previous year. This increase in supply is expected to meet the growing demand and stabilize the market further.