Telangana - Madhapur fuels Hyderabad’s office space leasing surge
In the first quarter of 2024, leasing activity in hyderabad increased significantly. According to the most recent hyderabad office report by Cushman & Wakefield, the city's office market had a robust gross lease of 2.5 million square feet (msf), representing an amazing 125% gain compared to the same period the previous year. With 89% of the quarterly office space leased, the madhapur premium submarket emerged as the hub of leasing activity.
One of the most significant lease deals was for Sattva Knowledge Park Tower 2, which is located in the madhapur suburb. Cigna Healthcare was able to get a new lease for 586,160 square feet. Lloyds bank further rented 2, 13,166 square feet. Another notable deal was Merilytics' leasing of 168,405 square feet at RMZ Nexity Tower 30, which is situated in Madhapur.
With several significant projects in the works, Hyderabad's skyline is about to change drastically. The 1,300,000-square-foot BSR Tech Park Tower-II in Gachibowli is anticipated to be finished by Q2 2024. Similarly, the 1,700,000-square-foot aparna Technopolis in madhapur is expected to be completed in the same quarter. By Q4 2024, the Spire Tower 110 in madhapur is expected to be finished as well.
In terms of rental patterns, the survey observed that while madhapur had a small increase in the first quarter of 2024, weighted average rates in Gachibowli remained steady. In comparison to the previous quarter, the city-wide market rents saw a little increase overall, representing a 4% increase over the same period last year.
In terms of rental patterns, the survey observed that while madhapur had a small increase in the first quarter of 2024, weighted average rates in Gachibowli remained steady. In comparison to the previous quarter, the city-wide market rents saw a little increase overall, representing a 4% increase over the same period last year.
The research also stated that over the following three quarters, madhapur and Gachibowli together are expected to add about 13 msf of new supply, which would suggest a further increase in vacancy rates.