Hyderabad Commercial Real Estate: Market Dynamics | Q1 2026

The Hyderabad commercial real estate market continued to show strong leasing activity in Q1 2026, supported by demand from IT-BPM companies, flexible workspace operators, BFSI occupiers, GCCs and life sciences businesses. Competitive rentals, quality office spaces and continued absorption have helped Hyderabad strengthen its position among India’s major office markets.

Hyderabad Office Market at a Glance

According to the Q1 2026 report, Hyderabad recorded total office stock of approximately 125.8 million sq. ft., with an overall vacancy rate of 20.22%. Gross absorption during the quarter stood at 3.4 million sq. ft., representing a 22% year-on-year increase.

Conventional office space dominated leasing activity with approximately 2.5 million sq. ft., or 74% of transactions. Flexible workspaces accounted for around 0.9 million sq. ft., representing 26% of leasing activity.

Sector-wise, IT-BPM contributed 36% of leasing, followed by flexible workspace operators at 30% and BFSI companies at 23%.

Large-format office transactions remained prominent, with spaces of 100,000 sq. ft. and above accounting for 76% of transaction activity. Deals between 50,000 and 99,999 sq. ft. contributed 13%, while transactions below 50,000 sq. ft. accounted for 11%.

Performance Across Hyderabad’s Key Micro-Markets

SBD I, covering HITEC City, Madhapur, Kondapur and Raidurg, remained the city’s largest office micro-market with approximately 73.18 million sq. ft. of stock. The market recorded a vacancy rate of 7.54% and net absorption of 1.98 million sq. ft., with quoted rentals ranging from INR 70 to INR 120.

SBD II, including Gachibowli, Nanakramguda and Kokapet, had around 41.4 million sq. ft. of office stock, with a vacancy rate of 40% and net absorption of 0.20 million sq. ft.

PBD East, covering Pocharam and Uppal, recorded 2.25 million sq. ft. of stock, while PBD South, including Shamshabad and Adibatla, had approximately 0.8 million sq. ft.

Key Leasing and Development Activity

Major leasing transactions during the quarter included Accenture taking 1,057,000 sq. ft. at Technopolis, followed by Uber leasing 950,000 sq. ft. at Meenakshi Eco Park. WeWork leased 600,000 sq. ft. at Phoenix H10, while Tech Mahindra occupied 397,000 sq. ft. at Technopolis.

The report also highlights key construction activity, including Cyberspazio with 1.58 million sq. ft. and DSR Tech Park with 1.2 million sq. ft.

Hyderabad’s metro network, with a reported 69 km operational network, also continues to support connectivity, while proposed Phase II extensions are expected to expand access to additional growth corridors.

For more details on Hyderabad’s Q1 2026 commercial real estate market, including leasing trends, micro-market performance, major transactions and metro expansion plans, download the complete Hyderabad Market Overview Q1 2026 PDF.