The IT and ITES sector accounted for major chunk of office market space absorption in Hyderabad during the first half of 2012-13.
Healthcare and Biotech sectors were other major consumers, according to a study by consultant Knight Frank.
The Hyderabad office market witnessed consistent office space demand during the first half of the new financial year 2012-2013. However, the impact of regional political upheaval and unfavourable global economic conditions were adversely felt across all office sectors. Occupiers remained cautious about expansion plans.
The prime factors working in favour of the Hyderabad market are its reasonable rental values and better infrastructure, as compared to other IT/ITES dominated cities. This aided in sustaining office demand in the first half.
During 2011-2012, the overall office space absorption was 5.4 million sq.ft and the first half of this year saw absorption of about 2.5 million sq.ft.
During the first half of last year, IT and ITES accounted for about 78 per cent of the 3 million sq.ft with Facebook, Convergys, Cognizant, IBM etc taking up space. However, in first half of this year, IT and ITES has accounted for about 64 per cent of the 2.5 million sq.ft. Key transactions include that of Accenture, AMD and Amazon.
The reduction in share of IT and ITES sector was to some extent compensated by other sectors. Novartis, Celon Labs, Ocimum Biotech and Neuland Labs added to their space.
The office space absorption has been mainly in the suburban parts of the city.