Hyderabad Office Market 83%Rise In Net Absorption In Q4
The Hyderabad office market has exhibited signs of sustained recovery with net absorption increasing continuously over the past three quarters, with Q4 2020 witness to a net absorption of 2.83 mn sq. ft, a jump of 83 per cent over the previous quarter.
This was backed by new completions during the quarter getting operational with full occupancy. This is at par with the average quarterly levels witnessed in the historic year of 2019. Hitec City and Gachibowli continued to attract occupiers, accounting for a major chunk of the leasing activity, according to real estate consultany JLL.
As the year witnessed occupiers resorting to space and cost optimisation strategies, vacancy levels in the city continued to rise in Q4 2020. Rentals have largely remained range-bound across most of the submarkets in the city during the quarter.
India’s office market continues to recover, witnessing a net absorption of 8.27 million sq ft, an increase of 52 per cent in Q4 2020 (Oct-Nov-Dec) when compared to Q3 2020. Except for Bengaluru, net absorption of office spaces improved in the other six cities of Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, Pune, according to JLL Research.
Hyderabad led the pack with the highest net absorption in Q4 2020. While the southern markets of Bengaluru and Hyderabad accounted for more than 50 per cent of the net absorption in Q4 2020, the maximum increase in net absorption (when compared to Q3 2020) was witnessed in Mumbai, Delhi NCR and Chennai. Kolkata also witnessed a strong resurgence albeit on a lower base.
Indicating a continued recovery, new completions during the October-December quarter were recorded at 12.78 million sq ft., an increase of 39 per cent when compared to Q3 2020.