Despite concerns over recent US tariffs, Hyderabad’s commercial real estate sector remains robust and resilient. Industry experts gathered at IKON 2025 highlighted Hyderabad’s emergence as a leading destination for Global Capability Centres (GCCs), driven by a skilled workforce, strong infrastructure, and favourable government policies. The city is poised for growth in office space demand, especially from the pharmaceutical and defence sectors, alongside rising interest in flexible workspace solutions.
Expert Panel at IKON 2025 Highlights Market Strength
At IKON 2025, a premier industry event hosted by flexible workspace provider iKeva, key leaders, including JLL India, Cushman & Wakefield, Raheja Corp, and ANAROCK, shared insights on the sector. Ms Archana Naidu, iKeva’s Board Member, emphasised that the event aimed to foster dialogue on emerging trends and challenges in India’s commercial real estate.
Panellists underscored Hyderabad’s rapid rise as a preferred location for GCCs, supported by a growing talent pool and modern amenities. The city holds an edge over other metros by offering better value, even with rising real estate prices. Panel members pinpointed pharmaceutical and defence industries as critical drivers of future office space demand. Additionally, managed office spaces with bundled value-added services were identified as key to differentiating offerings in a competitive marketplace.
Wave of Consolidation and Competitive Market Outlook
Discussion also forecasted a wave of mergers and acquisitions in the next three to five years, signalling industry maturity and increased competition. Currently home to 356 GCCs, about 18% of India’s total, Hyderabad is solidifying its status as Asia’s next major GCC hub.
The FlexInsights Take
Hyderabad’s commercial real estate market showcases strong fundamentals that make it resilient against global trade uncertainties like US tariffs. Its combination of strategic government support, abundant skilled talent, and modern infrastructure continues to attract high-value tenants across sectors. The city’s growing GCC base, coupled with flexible workspace innovations and increasing demand from pharmaceutical and defence firms, positions it well for sustained growth. Investors and occupiers looking at India’s office markets should closely watch Hyderabad for its competitive pricing and evolving workspace solutions, which offer long-term value and growth opportunities.
