Hyderabad Sets New Record in Office Leasing as GCCs Drive Growth
Hyderabad has achieved its strongest-ever first-half office leasing performance, recording 7.5 million sq. ft. of office space leased during H1 2026, marking a 29% year-on-year increase, according to a Knight Frank report.
Global Capability Centres (GCCs) continued to power the city’s commercial real estate market, accounting for 45% of total office absorption with 3.4 million sq. ft. leased. Flexible workspace operators also remained a key contributor, representing 27% of total demand.
Despite the addition of 3 million sq. ft. of new office space, vacancy levels dropped significantly to 11.5%, highlighting Hyderabad’s strong demand and healthy market dynamics. Average office rentals also increased by 7%, reaching ₹80 per sq. ft. per month.
The residential sector remained equally resilient, with 19,249 homes sold during the first half of 2026. While new housing launches saw a slight moderation, average residential prices climbed 7% to ₹8,258 per sq. ft. Among the city’s prime locations, Banjara Hills recorded the highest price appreciation.
Hyderabad continues to strengthen its position as one of India’s fastest-growing business and real estate destinations, attracting global companies, investors, and homebuyers alike.