The pandemic is showing a downward curve, at least for now, and the market is once again buoyant. Big companies are eyeing office spaces in the city, thanks to the infrastructural and business developments here. Hyderabad has emerged as the most resilient city by registering maximum share in leasing volume at 2.5 million sq ft, surpassing Bengaluru, as the companies looked at large block deals and even leased entire buildings
BFSI and flexible workspaces accounted for 66 percent of total demand in Hyderabad. In Q3, 2021, it was seen that Raidurg saw maximum leasing traction accounting for 53 percent demand, while HITEC city contributed for 40 percent.
After a hard-hitting second quarter, the overall absorption numbers rose by 89 percent quarter-on-quarter, leveraging tenant favorable market dynamics. IT sector-driven companies in Hyderabad, Bengaluru, and Pune accounted for 62 percent of gross absorption in Q3, 2021. In fact, large deals made a comeback led by demand from flexible workspace operators.
Pan-India, too, there was a demand for flexible workspaces to tide over uncertain times. The share of Flexi workspaces in leasing increased to 26 percent in Q3 2021. Leading flexible workspace operators focused on signing large block deals exceeding 1,00,000 sqft in almost all major cities. Pune accounted for the largest share in flexible workspace, followed by Hyderabad.