Hyderabad: Office rent in Hyderabad has seen a 10 % increase from January to June 2025. The transaction volume in office spaces rose to 16 % reaching 5.9 million square feet.
Among various sectors, third party IT services take up 45% of office spaces and Global Capacity Centers (GCCs) 40%. These firms, which accounted for a mere 11% of total absorption in the first half of 2024, have surged to capture 45% of the market in the first half of 2025 – a staggering 396% year-on-year growth that saw them lease 2.6 million square of office spaces.
Big names occupy bigger chunk of office rent in Hyd
Tata Consultancy Services (TCS) occupies office space of 1.05 mn sq ft, whilst HCL, Wipro, and Infosys have all made significant commitments, underlining Hyderabad’s enduring appeal as a global technology operations hub.
According to a report by Knight Frank India, as the GCCs occupied 40% of the office rent space in Hyderabad. The city stood third behind Bengaluru and Chennai in GCC activity. The electronic and pharmaceutical sectors dominated this space with 46% of GCC transactions, followed by healthcare services at 28% and BFSI at 18%.
Notable occupiers taking up office rent in Hyderabad including Apple, Lloyds Bank, McDonald’s, Johnson & Johnson, Amazon, and Salesforce have all established or expanded their presence, reinforcing Hyderabad’s credentials as a strategic destination for high-value global operations.
It is interesting to see that while demand has surged, new office supply has declined sharply by 72% YoY with just 1.4 million square feet of fresh space delivered during H1 2025. with vacancy rates dropping to 14.4% from 15.1% in the first half on 2024.
While the growing office demand led to 10 percent increase in office rent in Hyderabad; there was 11 percent increase in office rent in districts. These locations commanded 97% of total leasing activity, with HITEC City alone contributing 61%.
Vacancy rates in HITEC City remained the lowest across the city, with Grade A buildings reporting exceptionally low vacancy levels. Current rental ranges reflect this premium positioning, with SBD properties commanding INR 70 -95 /sq ft monthly.
Residential sector in Hyderabad
In terms of growth in the residential sector, Hyderabad witnessed upward trajectory with sales reaching 19,048 units in H1 2025, representing a modest 3% increase over the previous year. However, the real story lies beneath these headline figures, where a pronounced shift towards premium living is reshaping the market landscape.
Properties costing above Rs 10 million now account for 67% of the sales. In the first half of 2024 the category made 62% of the total sales, said the report. Premium housing category is dominated by the Rs 10-20 million, contributing 45% of total sales and registering an 8% year-on-year increase.
The Rs 20-50 million segment has grown from 15% to 18% of total sales, marking a robust 23% year-on-year surge. In the residential sector, the unsold inventory stood at 54,458 units in the first half of 2025, marking an 11% increase from the previous year. However, this increase masks significant variations across price segments.
Joseph Thilak, National Director, Occupier Strategy and Solutions (Hyderabad & Chennai) Knight Frank India said, “The residential market in Hyderabad is experiencing a fascinating evolution that mirrors the city’s broader economic transformation. We’re seeing homebuyers increasingly prioritise quality over affordability, with properties above ₹10 million now commanding 67% of sales. This is a clear indication that buyers view their homes as lifestyle investments rather than mere shelter.”
He added that the 23% surge in the ₹20-50 million segment particularly highlights how Hyderabad’s affluent residents are seeking bespoke living experiences with premium amenities and smart-home features. Whilst regulatory oversight from HYDRAA has created some near-term uncertainty, it is ultimately strengthening the market by weeding out questionable developments and ensuring long-term sustainability.
Thilak further said that for home buyers in the premium segment, Hyderabad continues to offer exceptional value with its combination of spacious living, world-class infrastructure, and proximity to employment hubs.
