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By: vinod07 | October 11, 2016

Furnished office space
Furnished office space

If like others, you are also looking for an office space to set-up in Hyderabad. It’s important that you go through this check-list.

The first and foremost thing to do is to narrow down on your preferred location.

You can choose to be in the core location area of the city, the suburbs of city or in the peripheral areas.

Some of the preferred locations in Hyderabad are:-

·  Begumpet, Somajiguda, Punjaghutta

·  Hitec city, Madhapur, Gachibowli

·  Uppal, Pocharam, Shamshabad.

 As the city is growing towards the western periphery, most of the newer buildings are located in this  western part such as – Madhapur, Gachibowli, but if commuting is a problem, then you can prefer to stay in the central business district of Begumpet, Somajiguda or Punjaghutta.

Types of Office spaces: 

Offices are generally are categorized in the following types:-

·  Bare shell – the owner/ landlord only provides the bare office spaces without any flooring and hence the entire fitting-out of the space has to be undertaken by the client. Sometimes, the Landlord can also furnish out common area spaces, outside toilets, lifts, staircase etc.

·  Warm shell – herein the landlord provides with air-conditioning and DG backup facilities along with basic type of flooring which is done by them.

·  Plug n Play space – Also called a fitted out office it means the office space is fully furnished with all the interior work and workstation done p and the tenant just has to come with their server, UPS and Laptops/desktop system to start their operations.


The budget (along with the location) for an office basically helps in filtering out the options from which the company has to choose.

Depending on whether the requirement for the project team is urgent or not, they have to decide if they can afford to wait for the time till the fit-outs are being done.

Any older or second-hand fit-outs would naturally cost less, as most of its cost has been amortized by the previous out-going tenants.
In case the occupants wishes to choose the newer fit-outs, it would also entail a huge capital expenditure and a Lock-in period for the tenant till the time the investment on the fit-out have not been amortized by the Landlord.

The location of the office as it includes the supply of the space options and the prevailing rates also determines the budget.

Number of employees: 

Most of the companies have specific requirement as to the number of workstations they would need to execute their project. But, they fail to understand the area required to house these many seats for their employees.

The IT market was divided into IT software development set-ups and BPO/KPO/call center setups. The thumb rule till a few years back was that for every employee the occupant would need 100 sq ft of space.

But nowadays (after the recession of 2008) due to cost-cuttings measures this space per employee has been reduced to just 60-75 sq ft/ employee.


There are two taxation regimes under which the companies operate, namely the SEZ and the STPI.

Under the SEZ scheme the occupant (unit) gets tax benefits for operating from a SEZ.
Some of the salient points are

The SEZ regime entails export obligations from the unit for the next 5 years, hence they should prudently consult a tax /management consultant before choosing to locate their operations in an SEZ.

Generally the office spaces which are in the IT SEZ are more expensive than non-SEZ office spaces.

Other Terms:

Parking – The norm these days is to allot a car parking slot per 1000 sq ft of area

Power Requirements: 
The general rule is to provide for a 1 kva of power/100 sq ft of space leased.

DG power: 
The clients should check for the sufficient back-up power which should be adequate  for their requirements.

Employees’ perspective:

Most of the IT corporate prefers to be located in the core or the western periphery of the Hyderabad as most of the IT development is towards this part. In other cities, the suburbs are preferred due to their cost effective option.

It always helps in understanding the office space requirement in detail so that they can be given the  most suitable solution, as moving an office space is even more messy than moving one’s own residence.


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