by THO
Driven by strong demand from global firms, Hyderabad’s office space inventory is expected to exceed 200 million sq ft by 2030 driven by demand from technology firms and Global Capability Centres. A joint report by CBRE and the Hyderabad Software Enterprises Association (HYSEA) on February 11 stated that the city’s office stock has more than tripled since 2014, reaching nearly 137 million sq ft as of December 2024.
Hyderabad currently accounts for around 15% of India’s total office space and over 18% of it is green-certified office stock, the report added.
The report highlights Hyderabad’s position as a preferred destination for businesses seeking dynamic office spaces. In 2024, this momentum continued, with absorption reaching 12.3 million sq. ft.
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The adoption of advanced technologies like AI, cloud computing, and data analytics has strengthened Hyderabad’s tech ecosystem and talent pool, establishing it as a hub for Global Capability Centers (GCCs), it said.
“GCC absorption in Hyderabad grew by over 12% from 2022 to 2024, reaching 5.3 million sq. ft. in 2024, accounting for nearly 43% of the total office space taken up in the city last year. Hyderabad is ranked second in GCC leasing in India after Bengaluru, and the city continues to attract global corporations across industries such as technology, pharmaceuticals, biotechnology, and financial services,” the report said.
Technology sector leads Hyderabad’s office absorption
According to the report, the technology sector dominated Hyderabad’s office leasing activity, accounting for the highest share at 31%, driven by the presence of leading industry players.
Historically, the city’s office absorption has been led by the technology sector, with an annual share of around 30-35%. However, in recent years, Hyderabad has seen a diversification in its occupier base.
“Various other sectors, including flexible space operators, life sciences firms, and consulting companies, have increasingly turned to Hyderabad for their office space needs. In 2024, life sciences firms accounted for 21% of office leasing, while flexible space operators held a 14% share, reflecting a growing demand across industries,” the report stated.
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Hyderabad’s office space outlook
The report projected that Hyderabad’s office space inventory will grow 1.5 times over the next five years, reinforcing its attractiveness to businesses.
With rising investments in advanced technologies such as AI, robotics, and electric vehicles, alongside the Telangana Government’s continued focus on infrastructure development, the city is well-positioned to sustain its momentum as a global business hub, the report said.
Hyderabad’s robust IT/ITeS ecosystem and skilled talent pool have cemented its status as a preferred destination for Global Capability Centers (GCCs) across technology, BFSI, and life sciences.
The city’s unrestricted Floor Space Index (FSI) policies, coupled with affordable housing and a high quality of life, attract young professionals and drive office space demand. Additionally, Hyderabad’s thriving IT and pharmaceutical sectors continue to fuel growth in both residential and commercial real estate.
“Hyderabad’s transformation into a global business and technology hub showcases its ability to adapt and evolve with market demands. The city’s robust infrastructure, diverse occupier base, and skilled talent pool position it as a critical growth centre for India’s real estate landscape,” Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East and Africa, CBRE, said.
