Hyderabad continues to be a major commercial office market in India, supported by demand from BFSI, IT-BPM, Global Capability Centres (GCCs) and life sciences. Competitive rentals, established office locations and the availability of quality office spaces contribute to the city's commercial real estate activity.
The market is supported by conventional and flexible office spaces, with major leasing activity concentrated in SBD I and SBD II. New office developments and proposed metro extensions also form part of Hyderabad's commercial infrastructure landscape.
Hyderabad Office Market - Key Highlights Q3 2026
Hyderabad Office Market recorded the following performance indicator during Q3 2026:
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Total Office Stock: 134.1 million sq. ft.
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Vacancy Rate: 22.1%
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New Supply: 7.4 million sq. ft.
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Gross Absorption: 4.9 million sq. ft.
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Net Absorption: 4.1 million sq. ft.
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Average Rent: ₹97
Sector-wise Office Leasing
BFSI accounted for the largest share of Hyderabad's sector-wise office leasing activity, followed by flexible workspace operators and IT-BPM companies.
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BFSI: 38%
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Flexible Workspace: 24%
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IT-BPM: 13%
Conventional office space accounted for 73% of the reported space distribution, while flexible office space contributed 27%.
Hyderabad Commercial Real Estate Market Overview - Q3 2026
An in-depth analysis of the City's key market indicators, competitive landscape, and emerging opportunities to support strategic planning.
Hyderabad Office Market - Micro-Market Overview
Hyderabad's commercial office market is distributed across four major micro-markets: SBD I, SBD II, PBD East and PBD South. These locations differ in office stock, vacancy levels, rental ranges and absorption.
1. SBD I
SBD I covers Hitec City, Madhapur, Kondapur and Raidurg.
- Rental Range: INR 110-150
- Office Stock: 78.6 million sq. ft.
- New Supply: 0 million sq. ft.
- Vacancy: 8%
- Net Absorption: 2.9 million sq. ft.
2. SBD II
SBD II includes Gachibowli, Nanakramguda and Kokapet.
- Rental Range: INR 55-85
- Office Stock: 52.42 million sq. ft.
- New Supply: 7.4 million sq. ft.
- Vacancy: 40.1%
- Net Absorption: 1.2 million sq. ft.
3. PBD East
PBD East covers Pocharam and Uppal.
- Rental Range: INR 45-65
- Office Stock: 2.25 million sq. ft.
- New Supply: 0 million sq. ft.
- Vacancy: 40%
- Net Absorption: 0 million sq. ft.
4. PBD South
PBD South includes Shamshabad and Adibatla.
- Rental Range: INR 40-60
- Office Stock: 0.8 million sq. ft.
- New Supply: 0 million sq. ft.
- Vacancy: 0%
- Net Absorption: 0 million sq. ft.
Explore Hyderabad’s commercial real estate market in Q3 2026, covering office performance, micro-market trends, leasing activity, upcoming developments, and metro connectivity. Download the complete Address Advisors Market Report to know more.
