Smartworks has renewed its lease for approximately 2.3 lakh sq. ft. of office space at Aurobindo Galaxy in Hyderabad’s Madhapur district. The five-year agreement carries a total rental commitment of ₹121 crore, reflecting continued demand for managed workspaces as Hyderabad strengthens its position as a leading technology and GCC hub.
India’s flexible workspace sector continues to demonstrate strong resilience and growth, with Smartworks Coworking Spaces renewing a major office lease in Hyderabad worth approximately ₹121 crore. According to property registration documents, the managed office operator has extended its occupancy of around 2.30 lakh square feet at Aurobindo Galaxy in Madhapur, one of the city’s most active commercial office micro-markets.
The transaction highlights the growing importance of Hyderabad in India’s office leasing landscape, particularly among flexible workspace providers serving large enterprises, multinational corporations, and Global Capability Centres (GCCs). As occupiers increasingly seek agile workplace solutions and scalable office infrastructure, operators such as Smartworks continue to expand and strengthen their presence in key business hubs.
Major Renewal Signals Long-Term Confidence
The renewed lease covers the eighth, ninth, and tenth floors of Aurobindo Galaxy and has been executed with Raidurgam Developers Ltd. The agreement spans five years and carries an estimated rental commitment of ₹121 crore over the tenure.
Under the new arrangement, Smartworks will pay a starting monthly rent of approximately ₹1.75 crore, translating to a rental rate of nearly ₹75.90 per square foot per month. The agreement also includes a 15% rental escalation after the first and third years, reflecting the sustained strength of Hyderabad’s premium office market.
As part of the transaction, the company has deposited a security amount of ₹4.57 crore. The lease renewal follows Smartworks’ earlier five-year occupancy of the same space between 2021 and 2026, during which the operator reportedly paid over ₹85 crore in rent.
Hyderabad Remains a Flexible Workspace Hotspot
The renewal comes amid robust office demand across Hyderabad’s technology corridor. Madhapur, together with HITEC City, Raidurg, and Gachibowli, continues to attract technology companies, multinational firms, and GCCs seeking high-quality office environments.
Industry data shows Hyderabad’s office market has been one of the strongest-performing commercial real estate destinations in India. Large office transactions have become increasingly common, with deals exceeding one lakh square feet accounting for a significant share of overall leasing activity.
The city’s competitive rentals, strong talent ecosystem, and modern office infrastructure have helped position it as a preferred destination for enterprise occupiers and managed workspace operators alike.
Smartworks Expands Across Key Business Markets
The Hyderabad lease renewal forms part of Smartworks’ broader national expansion strategy. Over the past year, the company has continued to add large-format managed office campuses across major business centres, including Bengaluru, Mumbai, Pune, Chennai, and Delhi-NCR.
Recent transactions include a 4.92 lakh sq. ft. campus lease in Bengaluru’s Outer Ring Road corridor, additional office space in Hyderabad’s DLF Cyber City, and a major managed seating agreement in Mumbai. These moves underscore enterprises’ growing preference for flexible workspace models that offer scalability, operational efficiency, and lower capital expenditure.
Enterprise Demand Continues to Drive Growth
The renewal of such a large office footprint demonstrates growing confidence in the managed office sector despite evolving workplace strategies. Rather than reducing office footprints, many organisations are adopting flexible real estate models that allow them to balance employee experience, cost efficiency, and future growth requirements.
For Hyderabad’s commercial real estate ecosystem, the deal reinforces the city’s status as a leading office destination. With technology firms, BFSI companies, GCCs, and flexible workspace operators continuing to expand, demand for Grade A office assets remains strong. Smartworks’ ₹121 crore commitment serves as another indicator that enterprise-led demand is likely to remain a key driver of office market growth in the years ahead.
