Hyderabad witnessed the strongest surge in office rents compared to metros Delhi, Mumbai and Bangalore in the first quarter of 2017, according to a report by property consultant CBRE. IT corporates continued to flock to the city along with Pune to set up their offices, and with the opening of two large-sized SEZ or Special Economic Zone developments in Nanakramguda and Madhapur, office rents in Hyderabad registered an average 10-12 per cent increase. Robust infrastructure development along with competitive pricing has helped Hyderabad become a preferred destination for IT and non IT industries to set up shop, CBRE added.
Here are the key findings by property consultant CBRE:
- Over 1.3 million square feet of office space was absorbed during the quarter, led primarily by IT/ITeS (IT-enabled services) occupiers, followed by engineering, manufacturing and pharmaceuticals.
- Smaller offices have become a trend. Small and mid-sized offices with a floor space of less than 50,000 square feet accounted for about 90 per cent of the rentals in the quarter.
- IT/ITeS continued to drive transaction activity. 37 per cent of the overall space leased during the quarter was by the IT and ITeS companies, followed by banking and financial services companies (21 per cent) and engineering and manufacturing (18 per cent).
- Leasing during the quarter was mainly led by Delhi NCR (National Capital Region), Bangalore and Mumbai, accounting for almost 55 per cent of transaction activity, followed closely by Hyderabad.
- 3 million square feet of office space was added. Hyderabad led all the cities in project completions, followed by Mumbai. Meanwhile, delays in regulatory clearances were reported in cities such as Delhi NCR, Bangalore and Chennai.
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