Hyderabad Office Stock Reaches 123 Million Sq Ft, Becomes India’s Fastest-Growing Office Market: Knight Frank India..
Varahi media.com online news,Hyderabad, August 4, 2025 :Knight Frank India, in its report “A Billion Sq Ft and Counting – India Office Supply Growth Story”, has highlighted Hyderabad as one of
Varahi media.com online news,Hyderabad, August 4, 2025 :Knight Frank India, in its report “A Billion Sq Ft and Counting – India Office Supply Growth Story”, has highlighted Hyderabad as one of the fastest-expanding office real estate markets in the country. As of the first half of 2025, Hyderabad’s total office stock stands at 123 million sq ft, contributing 12% to India’s total office inventory, and growing at a CAGR of 9.2%—the highest among India’s top six metros.
Key Drivers of Hyderabad’s Office Market Growth:
- Strong tech sector presence
- Progressive infrastructure development
- Business-friendly policy environment
Business Districts Powering Growth
- Secondary Business Districts (SBDs) such as HITEC City, Kondapur, and Manikonda account for 47% of the city’s office stock.
- Peripheral Business Districts (PBDs) like Gachibowli, Kokapet, and Nanakramguda contribute 41%.
- Central Business Districts (CBDs) such as Banjara Hills and Jubilee Hills make up the remaining 11%.
This shows a strong preference among occupiers for scalable, well-connected office spaces with modern infrastructure and lower operational costs.
High-Quality Office Spaces
- Grade A offices: 68%
- Grade B offices: 30%
- Grade C offices: 1%
Hyderabad ranks among the top three Indian cities in terms of Grade A office space. Its integrated IT parks, smart regulations, and investor appeal make it a top choice for global corporations and REIT investors.
Demand Driven by Technology and GCCs
Hyderabad continues to attract strong demand from IT/ITES firms, Global Capability Centres (GCCs), pharma, and life sciences sectors. In H1 2025, there was robust leasing activity driven by the need for ESG-compliant and flexible workspace solutions.
Office Rent Averages:
- CBDs: ₹55–65/sq ft
- SBDs: ₹70–95/sq ft
- PBDs: ₹30–65/sq ft
These competitive rates offer companies access to high-quality infrastructure at a lower cost compared to other metro cities.
India’s Office Stock Journey: Key Milestones
| Period | Phase | Stock Growth (mn sq ft) | % Change |
|---|---|---|---|
| 1990–2000 | Tech Boom Foundation | Grew to 192 | – |
| 2000–2008 | IT/ITES Expansion | 192 → 278 (+86) | 45% |
| 2008–2010 | Global Recession | 278 → 355 (+77) | 28% |
| 2010–2014 | Recovery & Consolidation | 355 → 544 (+188) | 53% |
| 2015–2019 | Policy Reforms & Coworking | 575 → 756 (+181) | 31% |
| 2020–2023 | COVID Impact & Flex Space Growth | 791 → 922 (+131) | 17% |
| 2024–Present | GCC & AI-Led Growth | 973 → 993 (+20) | 2% |
Expert Insights
Joseph Thilak, National Director – Occupier Strategy & Solutions (Hyderabad & Chennai), Knight Frank India, stated:
“Hyderabad stands out in India’s commercial real estate story with nearly 90% of its stock in future-ready suburban and peripheral business districts. It offers a great mix of scalable office space, world-class infrastructure, and business-friendly policies—making it ideal for GCCs, tech giants, and investors.”
Rental Trends Across Major Cities (INR/sq ft)
| City | CBD | SBD | PBD |
|---|---|---|---|
| Ahmedabad | 40–51 | 47–55 | 55–60 |
| Bengaluru | 130–220 | 100–180 | 60–95 |
| Chennai | 70–95 | 75–105 | 38–70 |
| Hyderabad | 55–65 | 70–95 | 30–65 |
| Kolkata | 70–105 | 55–95 | 27–65 |
| MMR | 190–277 | 98–427 | 54–99 |
| NCR–Delhi | 220–390 | 90–230 | NA |
| NCR–Gurugram | 120–192 | 85–140 | 40–45 |
| NCR–Noida | 80–110 | 50–65 | 30–35 |
| Pune | 82–143 | 64–128 | 48–110 |
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