Hyderabad, once a beacon of economic growth and commercial activity, is now witnessing a sharp decline in office space absorption in the Congress rule. This significant downturn marks a worrying departure from the city’s booming office space success under KCR’s administration.
In Q3 2023, Hyderabad recorded a remarkable 2.70 million square feet (msft) of office space absorption, the highest in India at the time. This was a testament to the city’s growth trajectory, which placed it ahead of Bengaluru, a long-standing commercial hub, which absorbed 2.38 msft during the same period.
Hyderabad’s year-on-year success saw a massive 206% quarter-on-quarter (QoQ) growth, securing a 26.1% share of the country’s total office space absorption in 2023. These figures positioned the city as the top performer in the nation, alongside Bengaluru, which together accounted for 49% of the total 10.37 msft absorbed during Q3 2023.
Fast forward to Q3 2024, and the situation is drastically different. Under the Revanth Reddy-led Congress government, Hyderabad’s absorption rate has plummeted to just 1.26 msft—less than half of what it achieved in the same quarter last year. Meanwhile, Bengaluru has soared to 4.14 msft, further widening the gap between the two cities.
Experts attribute this fall to the Congress government’s inconsistent policies, lack of clarity on key projects, and a climate of uncertainty created by alleged corruption within the administration. This decline is a stark indicator of the stagnation the city is facing due to policy paralysis and poor governance.
Once hailed as Telangana’s growth engine, Hyderabad’s economic downturn raises concerns about the broader implications for Telangana’s progress. If Hyderabad continues on this trajectory, the city’s potential to attract global businesses and investments may be severely jeopardized, undoing years of economic progress achieved during the BRS rule.