Hyderabad Among India’s Top 3 Cities With Quality Office Space
Emerges as India’s fastest growing office market
Hyderabad: Hyderabad has emerged as one of the most dynamic and rapidly expanding office markets in the country. In the first half of this year till June, Hyderabad’s total office stock stands at 123 million square feet, contributing 12 per cent to India’s overall office market. It grew at an impressive CAGR of 9.2 per cent, the highest among the top six metros, said real estate consultancy Knight Frank India in a report.
The country’s total office stock is set to cross the landmark one-billion square feet in office supply by September, a major landmark in the office real estate market bringing India’s stock a few steps closer to that of other global gateway markets.
From under 200 million square feet in 2005 to nearly one billion square feet in 2025, office supply has grown at a CAGR of 8.6 per cent in the last 20 years. Hyderabad is playing a leading role in shaping the future of office real estate, offering a combination of infrastructure readiness, high-grade assets, and scalable business districts that appeal to global occupiers and long-term capital alike.
Hitec City, Kondapur, and Manikonda dominate Hyderabad’s commercial office landscape, accounting for 47 per cent of the total stock. Gachibowli, Kokapet, and Nanakramguda contribute another 41 per cent. Traditional business areas like Banjara Hills and Jubilee Hills now account for 11 per cent.
This distribution reflects a clear occupier preference for scalable, modern office ecosystems located in suburban and peripheral zones, enabled by metro connectivity, strong infrastructure, and lower operational costs.
With 68 per cent of its stock classified as Grade A, Hyderabad ranks among the top three Indian cities in terms of quality of office inventory. Grade B accounts for 30 per cent while Grade C is minimal at just one per cent. This premium skew reflects the city’s expansive integrated IT parks, progressive development regulations, and investor-friendly policies that continue to attract global corporations and REIT capital alike.
Hyderabad has long been a magnet for IT/ITES, global capability centres, and pharma and life sciences firms, which continue to drive leasing activity. In H1 2025 alone, Hyderabad witnessed strong demand from multinational occupiers seeking ESG-compliant, flex-enabled workspaces in the city’s key tech corridors, it said. Average market rentals remain competitive and range from `30-95 depending on the location
“Hyderabad’s office market presents one of the most compelling growth stories in Indian commercial real estate. Nearly 90 per cent of its stock concentrated in future-ready and among the highest share of Grade A offices. Hyderabad offers an ideal ecosystem for GCCs, tech majors, and institutional investors. The city's ability to absorb large-scale supply consistently speaks to its underlying strength and potential for continued expansion," said Joseph Thilak, national director, occupier strategy and solutions (Hyderabad and Chennai), Knight Frank India.
