Asia Pacific Office Outlook 2024

HYDERABAD

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 New supply of 29–30 msf is expected in the city’s office market during 2024–2025, with the majority of this supply (~66%) concentrated in Gachibowli submarket.  Hyderabad is expected to

 Owing to robust demand primarily from the IT-BPM, BFSI, and flexible workspace operator segments, the projected net absorption for 2023 is approximately 7.5 msf.  Net absorption for 2024 and 2025 is expected to fall within the range of 8.5–9.2 msf.  Vacancy rates are anticipated to rise until 2025 due to the increased supply volume.

 Rental growth of 2.6% is anticipated by the end of 2023.  During 2024 and 2025, rental growth is likely to remain within 0.7–0.8%, constrained by the large volume of supply.  Rents are likely to rise from

 Despite increasing demand for office space, particularly from the IT-BPM and flexible workspace sectors, the Hyderabad office market is expected to experience a surge in vacancy levels due to a substantial influx of supply over the next two years.

witness 15.6 msf of new supply during 2024, an historic high.

INR 858 sf/yr as of end 2023 to INR 871 sf/yr by end-2025.