Hyderabad exceeded Bengaluru as India’s top commercial real estate (CRE) destination in terms of gross office space demand during the July-September quarter this calendar year, since occupiers focused on large block deals, particularly from the BFSI sector and flexible workplace operators. As per Colliers, after an average performance in Q2 2021, Hyderabad developed as one of the most resilient cities in terms of demand-supply dynamics. For the first time, Hyderabad had the highest share in leasing volume at 2.5 million sq ft (MSF), exceeding Bengaluru. But, on a year-to-date (YTD) basis, India’s silicon valley is the market leader. Overall, the top six cities of India recorded about 10.3 MSF of office gross absorption in Q3 this year, the highest volume registered since Q1 last year. IT-ITeS driven cities of Bengaluru, Hyderabad, and Pune estimated 62% of the gross absorption in Q3 this year. Managing director for office services (south India), Colliers, Arpit Mehrotra, told the media that the development in Asia is driven by cities as much as nations. Bengaluru and Hyderabad should be the fastest and third fastest-growing cities of Asia, respectively, over 2022-24. While Bengaluru has always been the blue-eyed boy of CRE, Hyderabad has displayed a large amount of potential and improved by leaps and bounds, particularly in the last decade. A refreshed and planned focus on the city’s infrastructure, talent availability, relatively better prices, proactive state government and favourable state policies have added to Hyderabad’s CRE growth story. The state plans to create multiple integrated projects across the city to keep enhancing its real estate momentum. In the last few years, technology giants like Apple, Google, Facebook and Amazon have joined this market, leading to tremendous economic development. In the Hyderabad market, BFSI and flexible workplace sectors took the maximum share in leasing accounting for 66% of the total demand. The micro-market of Rai Durg witnessed the maximum leasing traction estimating 53% of the overall demand, while Hitec City provided 40%. Hyderabad was additionally the top market in terms of office space supply during Q3 this year. The quarter observed the highest supply since Q2 2020 at 10.8 MSF in Q3 2021, with Hyderabad and Pune providing the maximum share at 29% and 25%, respectively. Image Source