Hyderabad Office Leasing Jumps 47% as GCC and Flex Demand Strengthen Market

Hyderabad continues to strengthen its position as one of India’s key office markets, recording 9.4 million sq ft of Grade A leasing during January-September 2026, according to Colliers. The figure represents a 47% increase from the same period last year.

Only Bengaluru recorded higher leasing during the nine months, at 15.7 million sq ft. Delhi-NCR followed Hyderabad with 8.3 million sq ft, while Mumbai, Pune and Chennai recorded 7.1 million, 6.9 million and 6 million sq ft respectively.

Hyderabad’s growth also comes against a strong national backdrop. India’s top seven office markets recorded 54.4 million sq ft of Grade A leasing during the first nine months of 2026, up 7% year-on-year. Q3 alone saw 18.7 million sq ft of leasing, the highest third-quarter level in recent years.

GCCs and Technology Keep Demand Firm

Global Capability Centres (GCCs) and technology companies remain important sources of office demand in Hyderabad. Bengaluru and Hyderabad together accounted for more than 55% of conventional technology-related office leasing during the first nine months of 2026.

The city’s strong technology ecosystem, talent base and established GCC presence continue to support demand for Grade A workplaces. Colliers has also identified Hyderabad as one of the major markets expected to remain prominent amid continued GCC expansion across India.

Flex Space Gains Ground

Flexible workspace is another important part of Hyderabad’s office-market growth. Colliers reported that flexible workspace operators leased 12.6 million sq ft across the top seven markets during January-September, up 37% year on year.

Hyderabad and Delhi-NCR recorded more than a two-fold increase in flex space uptake during the period. Across India’s top seven markets, flex operators accounted for around 23% of total office demand, showing how managed and flexible offices are becoming a larger part of occupiers’ workplace strategies.

Vimal Nadar, National Director and Head of Research at Colliers India, said, “Flex spaces could potentially form 20-25% of occupiers’ real estate portfolios over the next few years, up from 15-20% currently.”

Hyderabad Leads Q3 Office Supply

A major addition of new office stock has accompanied strong leasing. Hyderabad added 6.7 million sq ft of Grade A office supply in Q3 2026, accounting for around 35% of the total quarterly supply across the top seven markets.

For the January-September period, Hyderabad added 8 million sq ft of new supply, second only to Bengaluru’s 14.1 million sq ft. The additional stock gives occupiers more options as demand remains strong across technology, GCC and flexible workspace segments.

At the national level, Colliers expects office transactions across major markets to reach 75-80 million sq ft in 2026 if leasing momentum continues through the final quarter. Arpit Mehrotra, Managing Director, Office Services, Colliers India, said the market is “well poised for a stronger 2026.”