Hyderabad’s office leasing rose 50% year-on-year to 13.1 million square feet in the first nine months of 2026, driven by global capability centres (GCCs) and flexible workspace operators, according to a Knight Frank India report cited by The Hindu. The leasing volume has already exceeded the full-year total recorded in every year since 2018.
The city recorded transactions covering 8.8 million square feet during the corresponding period in 2025. The January-September 2026 volume also surpassed Hyderabad’s previous full-year high of 12.8 million square feet, recorded in 2019.
GCCs accounted for the largest share of activity, leasing 6.2 million square feet during the nine-month period. Their leasing rose 70% compared with the same period last year, increasing their share of Hyderabad’s total office transactions to 47% from 42% in 2025. Hyderabad’s share of GCC leasing across India also rose to 23% from 15%.
Flexible workspace operators recorded an even sharper expansion. Their leasing increased 2.5 times year-on-year to 3.5 million square feet, giving them a 26% share of the city’s total office transactions, compared with 16% in the corresponding period last year.
Third-party information technology services companies leased 2.9 million square feet, accounting for 22% of total transactions. Their share declined from 36% during the first nine months of 2025. India-facing businesses accounted for 0.5 million square feet, or 4% of the total leasing activity.
Leasing remained strong through the third quarter. Hyderabad recorded 5.9 million square feet of transactions in the first quarter, its highest quarterly volume since 2018. This was followed by 1.7 million square feet in the second quarter and 5.6 million square feet in the third quarter. July-September leasing rose 92% year-on-year and accounted for 30% of transactions across India’s eight major office markets during the quarter.
The increase in demand was accompanied by a substantial rise in new office supply. Completions reached 9.7 million square feet during the first nine months of 2026, more than three times the 3 million square feet delivered during the corresponding period last year. The third quarter alone contributed 6.7 million square feet of new office space.
Despite the higher supply, Hyderabad’s vacancy rate declined to 11.8% in the third quarter, from 13.3% a year earlier. The movement indicates that office demand absorbed a significant share of newly delivered space. Average transacted office rents also rose 9% year-on-year to ₹82 per square feet per month in the third quarter, compared with ₹75.50 during the same period last year.
Grade A premises accounted for 97% of all transactions during the first nine months, underscoring the concentration of demand in premium-quality office space. The report’s figures place GCC expansion, flexible workspaces and the delivery of large volumes of new Grade A supply at the centre of Hyderabad’s commercial real estate market in 2026.
