Hyderabad closed 2025 as one of India’s most resilient and competitive office markets, recording its highest-ever annual leasing volumes and underlining the city’s growing role in the global business services economy. Office transactions crossed 11 million square feet during the year, placing Hyderabad among a small group of Indian cities to achieve this scale, with demand driven largely by global capability centres and technology-led firms.
The milestone reflects more than a cyclical rebound. Urban economists say Hyderabad’s office market performance signals a structural shift in how multinational companies view Indian cities beyond traditional commercial hubs. The city’s combination of large-format office campuses, comparatively stable rentals and improving urban infrastructure has made it a preferred destination for firms seeking long-term operational certainty rather than short-term cost arbitrage. Global capability centres continued to anchor demand, accounting for a significant share of leasing activity. These centres, which house high-value functions such as engineering, analytics and product development, typically commit to larger floor plates and longer lease tenures. This has helped landlords maintain healthy occupancy levels while gradually pushing up rentals in established office corridors. Industry experts note that the depth of talent, supported by Hyderabad’s universities and technology ecosystem, remains a key differentiator. The office market’s growth also has broader implications for urban development. Rising absorption has reinforced the need for integrated planning across transport, housing and civic infrastructure. Office clusters along the city’s western and north-western corridors have intensified pressure on road networks and public transit systems, highlighting the importance of last-mile connectivity and sustainable mobility solutions. Urban planners argue that future office expansion must align with transit-oriented development to limit congestion and emissions.
From a real estate perspective, developers have responded with measured supply additions rather than aggressive overbuilding. This disciplined approach has helped prevent a sharp rise in vacancies, even as new projects reached completion during the year. Market analysts point out that Hyderabad’s office stock has increasingly shifted towards energy-efficient buildings, driven by occupier demand for lower operating costs and compliance with global sustainability benchmarks. The strength of Hyderabad’s office market has also supported ancillary sectors, including residential housing, retail and urban services. Steady job creation linked to office absorption has sustained housing demand in micro-markets close to employment hubs, while also reinforcing the city’s position as a magnet for skilled migration. Looking ahead, stakeholders remain cautiously optimistic.
While global economic uncertainty could influence decision-making timelines, the underlying drivers of Hyderabad’s office market talent availability, scalable infrastructure and a relatively predictable regulatory environment remain intact. The challenge for the city will be to manage growth responsibly, ensuring that office-led expansion translates into inclusive economic opportunity, resilient infrastructure and a more sustainable urban footprint over the next decade.
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Hyderabad Office Market Delivers Record Leasing Momentum
