Hyderabad: Office rentals in Hyderabad climbed to a record high in the March quarter, nearly catching up with Bengaluru, as strong demand from global capability centres (GCCs) and large occupiers tightened availability across the city’s prime office corridors.
Hyderabad’s average stock-weighted office rent rose 11.6% year-on-year to Rs 92.2 per sq ft per month in Q1 2026, according to data from Cushman & Wakefield, with rentals in Madhapur, Hyderabad’s dominant office micro-market, standing even higher at Rs 105.5 per sq ft amid limited availability and sustained occupier demand.
That puts the city at par with Pune at Rs 93 per sq ft and close to Bengaluru’s Rs 97 per sq ft, while matching Delhi NCR’s Rs 92 per sq ft levels, as per data shared with ET. Mumbai remained the country’s most expensive office market at Rs 171 per sq ft.
The sharp rise in rentals came alongside Hyderabad’s strongest-ever first-quarter leasing performance. Data from Cushman & Wakefield showed that gross leasing volume (GLV) in the city rose 21.6% year-on-year to 3.15 million sq ft in Q1 2026, accounting for 14% of India’s total office leasing activity of around 22 million sq ft during the quarter.
The trends point to a continued expansion by multinational companies leasing office spaces, with large transactions above 100,000 sq ft accounting for 81% of leasing activity during the quarter.
GCCs contributed to 26% of overall leasing activity, as multinational firms continued to expand technology, operations and back-office centres in the city, leasing 0.83 million sq ft during the quarter.
The demand surge came despite Hyderabad recording no new office completions in the quarter, leading to further tightening in vacancy levels across key office hubs.
Citywide vacancy declined 260 basis points year-on-year to 20.22%, while vacancy in Grade A+ assets in Madhapur fell to just 4.8%, reflecting growing pressure on premium office stock.
Leasing activity remained heavily concentrated in Madhapur, which accounted for 91% of total leasing during the quarter.
While IT-BPM firms remained the largest occupier segment with a 36% share of leasing, flexible workspace operators accounted for 30%, followed by BFSI firms at 23%.
The consultant expects around 11 million sq ft of fresh office supply to enter the market during the remainder of 2026, largely in Gachibowli, with another 20 million sq ft expected over 2027 and 2028.
Hyderabad’s average stock-weighted office rent rose 11.6% year-on-year to Rs 92.2 per sq ft per month in Q1 2026, according to data from Cushman & Wakefield, with rentals in Madhapur, Hyderabad’s dominant office micro-market, standing even higher at Rs 105.5 per sq ft amid limited availability and sustained occupier demand.
That puts the city at par with Pune at Rs 93 per sq ft and close to Bengaluru’s Rs 97 per sq ft, while matching Delhi NCR’s Rs 92 per sq ft levels, as per data shared with ET. Mumbai remained the country’s most expensive office market at Rs 171 per sq ft.
The sharp rise in rentals came alongside Hyderabad’s strongest-ever first-quarter leasing performance. Data from Cushman & Wakefield showed that gross leasing volume (GLV) in the city rose 21.6% year-on-year to 3.15 million sq ft in Q1 2026, accounting for 14% of India’s total office leasing activity of around 22 million sq ft during the quarter.
The trends point to a continued expansion by multinational companies leasing office spaces, with large transactions above 100,000 sq ft accounting for 81% of leasing activity during the quarter.
GCCs contributed to 26% of overall leasing activity, as multinational firms continued to expand technology, operations and back-office centres in the city, leasing 0.83 million sq ft during the quarter.
The demand surge came despite Hyderabad recording no new office completions in the quarter, leading to further tightening in vacancy levels across key office hubs.
Citywide vacancy declined 260 basis points year-on-year to 20.22%, while vacancy in Grade A+ assets in Madhapur fell to just 4.8%, reflecting growing pressure on premium office stock.
Leasing activity remained heavily concentrated in Madhapur, which accounted for 91% of total leasing during the quarter.
While IT-BPM firms remained the largest occupier segment with a 36% share of leasing, flexible workspace operators accounted for 30%, followed by BFSI firms at 23%.
The consultant expects around 11 million sq ft of fresh office supply to enter the market during the remainder of 2026, largely in Gachibowli, with another 20 million sq ft expected over 2027 and 2028.
