Outlook 2023 India
KEY MESSAGES BRISBANE HYDERABAD
Hyderabad is expected to witness 16.5 msf supply during 2022, a historic high. New supply of 28-29 msf is expected in the city’s office market during 2023-2024, with
Due to ongoing expansions seen in IT-BPM, flexible workspace and professional services sectors, net absorption for 2022 has been forecast at ~6.0 msf. Net absorption in 2023 and
Rent growth is likely to remain within 0.2-0.5% during 2023 and 2024, constrained by the large volume of supply. With lower volume of supply expected beyond 2024, rental growth is likely to pick up marginally at a rate of 1-1.5%.
Despite rising demand for space among occupiers, particularly from the IT-BPM and flexible workspace sectors, the Hyderabad office market is anticipated to witness a rise in vacancy levels driven by a huge volume of supply over the next two years. .
the majority of this supply (~57%) concentrated in Gachibowli submarket.
2024 is also anticipated to range around 6-6.5 msf.
Vacancy is expected to increase through to 2024 due to the higher volume of supply.
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