NEW DELHI: In H1 2026, Hyderabad’s office transactions reached 7.5 million sq ft, marking a 29% increase compared to the previous year, as reported by Knight Frank India.
This marks the highest leasing volume for Hyderabad in the first half of a year, and the second-highest total transaction volume following H2 2019.
Office completions surged by 111% year-on-year, totaling three million sq ft during this period, while the overall office stock in Hyderabad increased to 129.1 million sq ft, up by 5% year-on-year.
Despite a rise in supply, vacancy rates decreased by 296 basis points to 11.5%. The average transacted rent increased by 7% to ₹80 per sq ft per month.
Knight Frank noted that Grade-A transactions made up 95% of the total leasing activity in Hyderabad for H1 2026.
Global capability centers accounted for 45% of total leasing, compared to 40% in H1 2025, with notable occupiers including Uber, Invesco, L’Oréal, and ArcelorMittal.
Within GCC leasing, the distribution was as follows: other service sectors at 32%, BFSI at 28%, IT/ITeS at 23%, and manufacturing at 18%.
Flexible workspace operators constituted 27% of total leasing activity, up from 9% a year earlier, while managed office operators contributed 26% and coworking operators made up 1%. Third-party IT services accounted for 25% of leasing.
The Suburban Business District (SBD) led the office market in Hyderabad, accounting for 60% of leasing in H1 2026, with significant hubs including Kondapur, Raidurg, HITEC City, and the Financial District.
PBD West saw a jump to 36% of total leasing from just 1% in H1 2025, fueled by large transactions in Nanakramguda and demand for quality space in core districts. CBD and off-CBD areas together made up 4% of transactions.
On the supply side, the SBD led with 64% of completions, particularly in Kondapur, while PBD West accounted for 27%, primarily driven by developments in Nanakramguda. CBD and off-CBD locations contributed 8% to the total completions.
Among business districts, SBD recorded the highest annual rental growth at 11%, followed by PBD West at 7%, CBD and off-CBD at 6%, and PBD East at 1%.
In terms of rental rates, SBD rents ranged from ₹70-145 per sq ft monthly during H1 2026, while PBD West rents were between ₹55-97 per sq ft, and CBD/off-CBD rents varied from ₹60-85 per sq ft.
