Office space sales in Hyderabad, India, increased over three times in the last five years, according to a report released by property consultant firm Knight Frank. The report, titled “Work From Hyderabad,” attributes the spike in demand for office spaces to the changing nature of the city’s IT industry.
“The mainstay of Hyderabad’s office market has for long been the IT sector but this was limited to back-end operations and outsourced processes i.e., BPOs (Business Process Outsourcing) and KPOs (Knowledge Process Outsourcing). Today, the focus of these occupiers is on captive production and product development functions,” the report says.
While there has been a slump in office transaction volume this year due to COVID-19, the report noted that office rentals in the city “have remained stable so far.” The report further stated that Hyderabad “is one of the few cities that has recorded a positive rental growth of 2 per cent year-on year (YoY) in Q3 2020.”