Hyderabad exceeds Bengaluru with nearly 3 million sq ft of net absorption reported during the last three months of 2021. Bengaluru slipped to the second place, which is 0.6 million down to 2.4 million sq ft. and Hyderabad topped the ranks in terms of absorption among the top seven cities of India.
During Q4 2021, Hyderabad recorded higher absorption, leaving behind the other Indian cities like Chennai (0.85 mn sq ft), Delhi NCR (1.61 mn sq ft), Kolkata (0.47 mn sq ft), Mumbai (1.88 mn sq ft) and Pune (1.34 mn sq ft).
JLL research data shows Hyderabad Q4 2021 net absorption jumped 145 percent to 2.99 million sq ft from 1.22 million sq ft in the corresponding period while Bengaluru net absorption increased 95 per cent to 2.42 million sq ft in the last quarter of 2021 from 1.24 million sq ft in Q4 2020.
Hyderabad overall net absorption stood at 2021 at 4.14 million sq ft.
“The tech sector continues to make big-ticket investments and remains the critical sector in spurring growth in demand for office space in Hyderabad,” Sandip Patnaik, Managing Director, Telangana and Andhra Pradesh, JLL told the local daily Telangana Today.
“The State government’s focus on improving infrastructure and availability of a large talent pool makes it a lucrative market for investments,” Patnaik added.
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Hyderabad also stood ahead in terms of completions in Q4 2021 with 2.53 million sq ft while Bengaluru managed completions of 2.45 million sq ft, 0.09 million sq ft completions happen in Chennai, 0.35 million sq ft in Delhi NCR, 0.10 million sq ft in Kolkata, 1.68 million sq ft in Mumbai and 1.93 million sq ft in Pune.
Hyderabad’s cumulative new completions for the preceding year stood at 9.31 million sq ft, reflecting 20 percent of the country’s total new completions.
Pan-India Status Quo
In Q4 of the year 2021, the Indian office sector net absorption stood at 11.56 million sq. ft, the highest in the last two years, and up by 86 per cent quarter-on-quarter.
On a half-yearly basis, net absorption increased by 26 percent for the second half of 2021(July-Dec 2021) on a year-on-year (Y-o-Y) basis.
A new supply of 9.12 million sq ft was fulfilled in Q4 2021, plummeting 16 per cent Q-o-Q.
For the year 2021, the new supply addition came in at 45.7 million sq ft and 23 percent higher y-o-y.
“While net absorption was up marginally, we have observed greater traction in overall leasing activity. The Gross Leasing Volume (GLV) for the last quarter of 2021 was recorded at the pre-Covid levels as seen in Q4 2019 at 15 million sq ft. This is also the highest in the last eight quarters and higher than the average quarterly GLV numbers during the pre-Covid (2018 and 2019) period as well,” said Radha Dhir, CEO and country head, India, JLL.