Hyderabad outshines Bengaluru as top supplier of new office space in FY23: Anarock

Hyderabad surpassed Bengaluru in terms of fresh office supply in FY23 at 14.94 million square feet (msf), accounting for a 31 per cent share in overall supply of new office space in the top 7 cities of India, a new report by property consultancy Anarock revealed on Monday. The Silicon Valley however, maintained its lead in net office absorption at 9.88 msf during the period.

Overall, FY 2023 was a mixed bag for the commercial office space market in the top 7 cities, with the first half performing much better than the second, the report highlighted.

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This comes amid a spate of job cuts and recessionary trends globally. “Currently, the Indian economy is stronger than most developed nations, but the future bears watching,” warned Prashant Thakur, Senior Director & Research Head, Anarock Group, adding the currently depressed Indian office market may not improve till the first half of 2024.

Average office rentals in the top 7 office markets witnessed a 4 per cent yearly jump in FY23, with the average rental value of grade A offices across India reaching Rs 79 per square feet per month on the back of escalation in input costs. Mumbai Metropolitan Region (MMR) maintained its position as the most expensive office rental market, followed by Bengaluru and the National Capital Region.

Office vacancy rate during the period under review saw a marginal 0.1 per cent year-on-year decline, the report stated.