Hyderabad Office Market Boom! 19 Million Sq Ft New Space in 2025 | ICRA Report

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Hyderabad Office Market Boom 2025 | 19 Million Sq Ft New Grade A Office Space | ICRA Report
Hyderabad Commercial Real Estate Growth | Hitech City, Financial District Demand Surge
Why Global Companies Are Expanding Office Space in Hyderabad Despite Global Slowdown?

Hyderabad’s commercial real estate market is witnessing massive growth as demand for Grade A office space continues to surge. According to the latest ICRA report, nearly 19 million square feet of new office space is expected to be added this year alone — and 23% of it is already pre-leased.

Even amid global economic uncertainties, Hyderabad remains one of India’s strongest office markets. In the first nine months of FY 2025-26, the city added 8.4 million sq ft of Grade A office supply, while leasing activity reached 8.5 million sq ft, reflecting strong occupancy levels.

📊 Vacancy levels have dropped to 17% by December 2025, compared to 18.2% in March 2024.
📈 Hyderabad recorded 14% growth in office space over the last 5 years, outperforming other major Indian cities where growth remained below 7%.

Major demand drivers include:

IT & ITES companies

BPM firms

Banking, Financial Services & Insurance (BFSI)

Global Capability Centers (GCCs)

Key micro-markets like Hitech City, Madhapur, Gachibowli, and Financial District account for nearly 63% of total office space supply, making them the backbone of Hyderabad’s commercial growth story.

With limited supply expected in Hitech City during 2026-27, rental appreciation and increased investor interest are highly likely.

👉 Is Hyderabad becoming India’s top commercial real estate hub?
👉 Will office rentals increase in 2026?
👉 Is this the right time to invest in Hyderabad commercial property?

Watch the full video for detailed insights, data breakdown, and future outlook.

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