Hyderabad’s Large Office Leasing Surges 69% as GCCs and Enterprises Drive Demand

Hyderabad’s commercial office market continued its strong growth momentum in the first quarter of 2026, emerging as one of India’s most active destinations for large office transactions. According to Knight Frank India, the city recorded 4.4 million square feet of leasing in office spaces larger than 100,000 square feet during Q1 2026.

The growth marks a 69% increase over the 2.6 million square feet leased in the same period last year. Large office transactions alone accounted for nearly 75% of Hyderabad’s total office leasing activity of 5.9 million square feet during the quarter.

The numbers underscore Hyderabad’s growing importance as a preferred expansion market for Global Capability Centres (GCCs), multinational corporations, technology firms, and large enterprise occupiers seeking scalable office ecosystems.

Large Campuses Continue to Dominate Demand

The city’s office market is increasingly shifting toward large-format workspaces as businesses prioritise operational efficiency, collaboration, and long-term workplace planning. Companies are moving beyond fragmented office footprints and choosing integrated Grade A office campuses that support modern workplace strategies.

“Overall growth in office transaction volumes in Hyderabad was significantly supported by large office space deals in Q1 2026. This reflects a clear and sustained shift in occupier preferences towards higher-quality spaces that support evolving workplace strategies, efficiency requirements and ESG considerations,” said Joseph Thilak, National Director, Occupier Strategy and Solutions (Hyderabad, Chennai and Kochi), Knight Frank India.

Industry experts believe Hyderabad’s ability to offer modern infrastructure, comparatively lower occupancy costs, and a strong technology ecosystem is helping the city attract major occupiers more quickly.

Mid-Sized Offices Maintain Stable Activity

While large office transactions dominated the market, mid-sized office spaces between 50,000 and 100,000 square feet also recorded steady demand. This segment accounted for 17% of total leasing activity, totalling nearly 1 million square feet in Q1 2026.

Smaller offices below 50,000 square feet accounted for the remaining 8% of transactions, with leasing activity totalling approximately 0.5 million square feet.

Analysts say this balanced leasing pattern reflects Hyderabad’s diversified occupier base, where both established enterprises and growing businesses continue expanding operations across the city’s key commercial corridors.

ESG and Workplace Experience Shape Leasing Decisions

One of the major drivers behind Hyderabad’s leasing growth is the increasing focus on ESG-compliant office infrastructure and employee-centric workplace environments. Occupiers are actively seeking buildings that offer sustainability certifications, energy efficiency, wellness-focused amenities, and flexible workplace layouts.

Developers across Hyderabad are responding by expanding the supply of premium Grade A offices in major business districts such as HITEC City, Gachibowli, and the Financial District.

Real estate experts also believe hybrid work models are influencing occupier decisions, pushing companies to invest in higher-quality spaces designed to support collaboration, innovation, and employee engagement rather than simply maximising desk capacity.

Hyderabad’s Growth Momentum Remains Strong

Hyderabad’s strong office absorption levels reflect broader confidence in India’s long-term commercial real estate market. The city continues to benefit from strong infrastructure development, expanding metro connectivity, and increasing investments from global technology and business services firms.

As GCC expansion and enterprise-led leasing activity continue to grow, Hyderabad is expected to remain one of the country’s leading office markets through 2026 and beyond.

With demand increasingly shifting toward premium large-format campuses, the city’s commercial real estate sector appears well-positioned to capture the next phase of India’s evolving workplace transformation.