Hyderabad Absorbs 5.68 mn sq.ft in 3 Months
On the residential front, the city recorded a one per cent year-on-year increase in sales, with 9,541 units sold during the quarter.
Hyderabad: Hyderabad recorded office leasing of 5.86 million square feet in the first quarter of 2026, marking a historic high for a single quarter, driven by strong demand from Global Capability Centres, according to Knight Frank India.
Office transactions grew 48 per cent year-on-year from 4 million sq. ft. in Q1 2025, making the city the second-largest market for office space absorption among eight major cities in the country. Average rents rose eight per cent to Rs.77.5 per sq. ft. per month, while new completions stood at 2.3 million sq. ft., indicating steady supply.
Global Capability Centres (GCCs) accounted for 43 per cent of total leasing, absorbing 2.5 million sq. ft., up 53 per cent from 1.6 million sq. ft. in the same period last year. Third-party services firms leased 1.7 million sq. ft., contributing 29 per cent of total transactions, the highest among eight cities.
Flex workspace absorption surged to 1.42 million sq. ft. in Q1 2026 from 0.26 million sq. ft. a year earlier, with large enterprises, particularly GCCs, driving demand.
“GCCs remain the dominant occupiers of the office spaces in Hyderabad. Other office occupier profiles expanding also helped. The strong demand-supply office real estate dynamics has led to considerable rise in rental value of office assets in the city,” said Joseph Thilak, national director – occupier strategy and solutions (Hyderabad and Chennai), Knight Frank India.
On the residential front, the city recorded a one per cent year-on-year increase in sales, with 9,541 units sold during the quarter. The weighted average price rose nine per cent to Rs.8,211 per sq. ft., while new launches stood at 9,975 units.
Homes priced between Rs.1 crore and Rs.2 crore accounted for 43 per cent of sales at 4,061 units, while the Rs.2 crore to Rs.5 crore category witnessed a sale of 2,192 units, which make 23 per cent of the total sales. The Rs.50 lakh to Rs.1 crore segment followed with 2,467 units accounting for 26 per cent of the total sales, while only 821 residential units priced less than Rs.50 lakh were sold in the quarter, which accounted for merely eight per cent of the total sales.
