The report highlights Hyderabad’s growing prominence as a key business hub, with the city currently holding around 15% of India’s total office space. Notably, 18% of this stock is green-certified, reinforcing its commitment to sustainable real estate practices. In 2024 alone, office absorption reached 12.3 million sq. ft, underscoring its position as one of India’s most dynamic office markets.

GCCs and Tech Firms Drive Office Demand

Adopting cutting-edge technologies such as AI, cloud computing, and data analytics has strengthened Hyderabad’s reputation as a preferred destination for GCCs. The report highlights that GCC absorption in the city grew by over 12% from 2022 to 2024, reaching 5.3 million sq. ft in 2024—accounting for 43% of total office space leasing last year. Hyderabad is now ranked second in GCC leasing in India after Bengaluru and continues to attract global players from sectors such as technology, pharmaceuticals, biotechnology, and financial services.

“Hyderabad’s transformation into a global business and technology hub showcases its ability to adapt and evolve with market demands. The city’s robust infrastructure, diverse occupier base, and skilled talent pool position it as a critical growth centre for India’s real estate landscape,” said Anshuman Magazine, Chairman and CEO, CBRE, India, Southeast Asia, Middle East, and Africa.

Technology Sector Leads Office Space Absorption

The technology sector remains the primary driver of Hyderabad’s office space absorption, contributing 31% of total leasing activity. Historically, tech firms have occupied around 30-35% of Hyderabad’s annual office absorption, but in recent years, diversification in occupier demand has become evident.

“Various other sectors, including flexible space operators, life sciences firms, and consulting companies, have increasingly turned to Hyderabad for their office space needs,” the report noted. In 2024, life sciences companies accounted for 21% of office leasing, while flexible space operators captured a 14% market share, reflecting a broader demand across industries.

Future Outlook: Hyderabad’s Office Market to Expand 1.5x

The report projects that Hyderabad’s office inventory will grow 1.5 times over the next five years, reinforcing its appeal as a preferred business hub. With investments surging in AI, robotics, and electric vehicles, alongside Telangana’s infrastructure push, Hyderabad is well-positioned to sustain its rapid growth.

The city’s unrestricted Floor Space Index (FSI), affordable housing, and high quality of life continue to attract a young workforce, further driving office space demand. Additionally, Hyderabad’s strong IT and pharmaceutical sectors contribute to the city’s real estate expansion in both commercial and residential segments.

As businesses continue to flock to Hyderabad for its cost-effective, well-connected, and innovation-driven workspaces, the city’s trajectory as a global commercial real estate powerhouse seems more potent than ever.