Hyderabad's Office Market Hits a Five-Year High

HYDERABAD: The city has witnessed an unprecedented surge in office space transactions during the first quarter of 2025, marking the highest quarterly performance in the last five years. With 4 million sq ft of office space absorbed, Hyderabad secures its position as the second-highest in office transactions nationwide, trailing only behind Bengaluru, which recorded 12.7 msft in the same period, according to Knight Frank India's latest findings.

Year-over-Year Growth and Sector-wise Breakdown

The report highlights a 31% increase in office transactions compared to the previous year, with average rents climbing 9% to Rs 72 per sq ft per month. The IT services sector dominated the transactions, accounting for 49% of the total, followed by Global Capability Centres (GCCs) at 41%. Flex space operators lagged significantly behind, representing just 6% of the quarter's total absorption.

Expert Insights

Joseph Thilak, National Director at Knight Frank India, commended Hyderabad's commercial market for its robust performance, attributing the success to vigorous leasing activities by IT firms and GCCs. This achievement underscores Hyderabad's emergence as a leading commercial hub in India.