Large office spaces measuring one lakh square feet and above remained in demand in Hyderabad, in 2023, with transactions totalling 5.4 million square feet. Hyderabad demonstrated a Year-on-Year (YoY) growth of 50% in the transaction volume of large office spaces, rising from 3.6 million square feet in 2022 to 5.4 million square feet in 2023, a study by Knight Frank India shows.
Nonetheless, transactions for mid-sized office spaces—ranging from 50,000 square feet to 1 lakh square feet—experienced a YoY decline of 6.67%, falling from 1.5 million square feet in 2022 to 1.4 million square feet in 2023. These mid-sized transactions constituted 15% of the city’s overall office transactions.
Meanwhile, small office spaces, defined as those below 50,000 square feet, saw a YoY growth of 31.25% in transactions, rising from 1.6 million square feet in 2022 to 2.1 million square feet in 2023. These smaller office spaces accounted for 23% of the total office spaces transacted in the city.
According to the study, the Hyderabad office leasing market exhibited a 32% YoY growth, with a total area of 8.8 million square feet transacted in 2023 compared with 6.7 million square feet in 2022. This surge is attributed to the significant participation of Global Capability Centres (GCCs), particularly those outsourcing their IT and back-office functions to the city.
