Hyderabad’s HITEC City, a magnet for global capability centres (GCCs), has hit a leasing saturation point. With no Grade A office space available until late 2026, industry insiders reveal that major companies like Heineken are being pushed to explore nearby locations like the Financial District and Gachibowli.
Hyderabad’s HITEC City Hits a Space Crunch
Once hailed as India’s answer to Silicon Valley, Hyderabad’s HITEC City is now bursting at the seams. With its high-end office parks and cutting-edge infrastructure, the area has become a top choice for global capability centres (GCCs). But the unprecedented demand has outstripped supply—Grade A office spaces are now fully leased out, say real estate experts.
“There is nothing available,” confirmed Sreekanth Reddy, managing director-Hyderabad at Cushman & Wakefield. “No new supply will be available in HITEC City before the end of 2026.”
GCCs Push Demand to New Heights
Major global corporations establishing or expanding their GCCs in the city have fuelled the leasing frenzy. Dutch brewing giant Heineken recently committed nearly ₹3,000 crore to set up its centre in Hyderabad. However, securing real estate in the heart of HITEC City proved far more difficult than anticipated.
The area draws frequent comparisons to San Francisco’s Bay Area and houses premier developments like Sattva Group’s Knowledge Park and Knowledge City, RMZ’s Nexity, Raheja Mindspace, and CapitaLand Park. But according to industry insiders, all these marquee addresses are already spoken for.
Big Names, Bigger Footprints
Over the past year, companies like McDonald’s and Eli Lilly managed to snag large office footprints—roughly 2 lakh sq ft each—but were among the last to do so. McDonald’s secured space in one of the major tech parks, while Eli Lilly opted for a standalone building near IKEA after finding all park-based pharma spaces leased out.
With every inch of top-grade space taken, GCCs are left with few options in the core HITEC area. “GCCs now have no choice but to explore standalone options on HITEC City’s periphery or the Financial District (FD) and Gachibowli,” Reddy added.
Shift Towards Outskirts and Peripheral Zones
With no new supply expected in HITEC City before 2026, firms are beginning to explore emerging zones like Gachibowli and the Financial District. Though slightly removed from the core of HITEC, these areas are quickly rising in prominence as Hyderabad’s business ecosystem continues to flourish.
The space crunch signals both a challenge and a shift: as the city cements its status as a global tech and business hub, real estate developers and urban planners may need to fast-track new supply pipelines to keep pace with the GCC-driven demand.
Outlook: A Call for Expansion
Hyderabad’s success in attracting GCCs has now become a logistical hurdle. As companies with deep pockets and ambitious plans queue up for space, the city’s core office districts are at capacity. For now, the outskirts hold the key to sustaining this wave of investment and employment.
Industry watchers believe this may spur new infrastructure and office projects beyond HITEC City, potentially redefining Hyderabad’s next phase of commercial growth.
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