Hyderabad’s commercial real estate market remained a strong office leasing destination in Q2 2026, supported by continued demand from IT-BPM, GCCs, BFSI, healthcare, and life sciences sectors. The city recorded 126.7 Mn sq. ft. of total office stock, with 3.5 Mn sq. ft. of gross absorption and 1.1 Mn sq. ft. of new supply during the quarter. Overall vacancy stood at 18.2%, while conventional office space accounted for 76% of leasing activity and flexible workspace contributed 24%.
Among the key micro-markets, SBD I recorded 78.6 Mn sq. ft. of stock, 7% vacancy, 1.1 Mn sq. ft. of new supply, and 2.9 Mn sq. ft. of net absorption, making it one of the strongest-performing office markets. SBD II had 45.02 Mn sq. ft. of stock, with 36.5% vacancy and 0.9 Mn sq. ft. of net absorption. Rental levels ranged from INR 40–60 per sq. ft. in PBD South to INR 110–150 per sq. ft. in SBD I.
Hyderabad’s 69 km operational metro network, along with proposed extensions and the Airport Express Line, continues to strengthen city-wide connectivity. Overall, Q2 2026 reflects a diversified and expanding commercial market, with SBD I and SBD II remaining key office hubs.
Hyderabad Commercial Real Estate Market Insights- Q2 2026
An in-depth analysis of the City's key market indicators, competitive landscape, and emerging opportunities to support strategic planning.
