Hyderabad’s office market is set for strong growth. A recent ICRA report says the city will add 18–19 million sq ft of Grade-A office space by FY27. This marks a major expansion in Hyderabad’s commercial real estate sector.
The new supply shows continued developer confidence. Demand remains steady. The IT-BPM and BFSI sectors continue to drive office leasing in Hyderabad. A significant share of the upcoming projects is already pre-leased. This reflects stable occupier interest.
In the first nine months of FY2026, Hyderabad recorded solid leasing activity. The city added about 8.4 million sq ft of Grade-A office space. Net absorption reached nearly 8.5 million sq ft, slightly higher than new supply. As a result, vacancy levels declined. By December 2025, overall vacancy stood at around 17%.
Hyderabad holds a strong position among India’s top office markets. It accounts for a notable share of the country’s total Grade-A office stock. Key micro-markets such as Hitec City, Madhapur, Gachibowli and the Financial District continue to lead in both supply and demand. These locations remain preferred hubs for IT companies, global capability centres (GCCs) and financial institutions.
Office rentals have shown moderate growth in recent years. Average rents recorded a 3–4% CAGR across major office corridors. Similar trends are expected to continue through FY27. Balanced supply and steady demand are likely to support rental stability. However, limited new supply in certain prime areas may tighten vacancy in select micro-markets.
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Yash Paul is a real estate journalist and researcher based in Bangalore. He tracks emerging property hotspots and major developer announcements. Yash is dedicated to providing transparent, factual reporting on the region's rapidly evolving housing and commercial landscape.
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