Hyderabad office leasing records 13.1 msf in 9 months, up by 50% YoY: Knight Frank
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GCC leasing grows 70 per cent to 6.2 msf
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Hyderabad office leasing records 13.1 msf in 9 months, up by 50% YoY: Knight Frank
Hyderabad: Knight Frank India in its latest assessment of the Indian office market, reported that Hyderabad recorded office transactions of 13.1 msf between January and September this year, a 50 per cent year-on-year (YoY) increase from 8.8 msf in the same period last year. Leasing in the first nine months of 2026 has already exceeded the city's full-year volume of 2025 and of every year since 2018, including the previous high of 12.8 msf recorded in 2019. Hyderabad accounted for 20 per cent of office leasing across India's eight major markets, up from 13 per cent a year earlier.
The city recorded 5.9 msf of leasing in Q1 2026, its highest quarterly volume since 2018, followed by 1.7 mn sq ft in Q2 and 5.6 mn sq ft in Q3. Q3 leasing rose by 92 per cent YoY and accounted for 30 per cent of transactions across the eight major markets during the quarter.
New completions reached 9.7 mn sq ft in 9M CY2026, more than three times the 3.0 mn sq ft delivered a year earlier. Q3 2026 alone accounted for 6.7 mn sq ft of new supply. Despite the increase in completions, vacancy fell to 11.8 per cent in Q3 2026 from 13.3 per cent a year earlier, indicating strong absorption of available space. Global capability centres (GCCs) leased 6.2 msf in Hyderabad during 9M CY2026, up by 70 per cent YoY, and accounted share of 47 per cent of the overall city's transactions. Hyderabad's share of GCC leasing rose to 23 per cent from 15 per cent.
Flex operators also expanded their footprint, with leasing rising 2.5 times to 3.5 mn sq ft in 9 months in 2026. They accounted for 26 per cent of the city's total office transactions during the period.
Average transacted rents rose 9 per cent YoY to Rs82.0 per sq ft per month in Q3 2026. Grade A office space accounted for 97 per cent of transactions during 9 months in 2026, underlining the importance of quality office space in the market.
Joseph Thilak, Executive Director- Occupier Strategy & Solutions, Head of Data Center Business (India), Knight Frank India, said, “Hyderabad’s office market has demonstrated strong occupier demand, with nine-month leasing exceeding the full-year volumes recorded in every year since 2018. GCCs remain a key driver, while flex operators are expanding their presence. Vacancy has declined even as 9.7 mn sq ft of new space entered the market, reflecting the pace of absorption. With rents rising 9 per cent YoY, occupiers planning to expand should account for the availability and cost of quality office space in their decisions.”
