Despite the pandemic, the office space supply in Hyderabad continues to rise indicating the investors' confidence in the city. The city is sitting on a supply of 70 million square feet and is likely to add another 80-odd million square feet to its inventory in the next 4-5 years. That means Hyderabad's office space supply will swell over 150 million square feet by 2025.
A majority of this stock will come up Hyderabad's Western corridor along the Hi-Tec City-Madhapur-Financial District-Kokapet belt. With that, Hyderabad will become the third biggest officer market surpassing Mumbai. Bengaluru and Delhi-NCR are in the top two positions.
The office space absorption decreased drastically in the past year due to the pandemic effect. The city's vacancy rate has more than doubled — jumping from 4 million sqft in 2020 (Q2) to 10 million sqft in 2021 (Q2). But that has not deterred the investors' confidence. Phoenix, Divyasree, and GAR Corp are coming up with the highest supply of office space.