Hyderabad’s thriving IT sector is driving a surge in demand for office space. In a significant wave of activity, four major multinational companies (MNCs) have leased over 870,000 square feet of office space across the city. Qualcomm, LTIMindtree, IBM India, and S&P Capital IQ India are the key players behind these substantial deals, each securing prime locations in Hyderabad’s business districts.

Qualcomm has led by leasing the most significant space, securing 414,000 square feet in Hitech City’s Skyview building. This deal comes with a monthly rent of INR 3.15 crore. IBM India acquired 106,000 square feet in Divyasree Orion, Gachibowli, for INR 70.23 lakh monthly. S&P Capital IQ India, the research arm of S&P Global, also chose The Skyview building, leasing 241,000 square feet for INR 1.77 crore monthly. Rounding out the group is LTIMindtree, which leased 109,000 square feet in The Skyview building at a monthly rent of INR 89.18 lakh. All these leases are for five years, with built-in rent escalations.

This surge in office space demand reflects the positive outlook for Hyderabad’s real estate market. The city’s robust IT-ITeS sector, coupled with continuous infrastructure development and a dynamic business ecosystem, fosters sustained demand for residential and commercial spaces.

The residential market in Hyderabad, particularly in West Hyderabad, has witnessed remarkable growth. According to ANAROCK Research, between 2021 and the first quarter of 2024, approximately 218,800 new residential units were launched, with over 154,300 units sold. The year 2023 alone saw nearly 76,300 units launched and 61,700 units sold. West Hyderabad, renowned for its high concentration of office spaces, has experienced even more robust residential market growth. Average property values in this area have surged by 52% in recent years, with the current average price per square foot standing at INR 7,200. The appreciation of land prices by over 30% in the last three years has significantly contributed to the rise in property prices, further solidifying Hyderabad’s appeal as a place to live and work.

These substantial office space deals and positive trends in the residential market underscore Hyderabad’s growing prominence as a business hub. With a strong focus on infrastructure and technology, the city is well-positioned for continued growth in the coming years.