ASIA PACIFIC OUTLOOK 2025

HYDERABAD

KEY MESSAGES

Supply

Demand

Rents

Key Outlook

Hyderabad’s office market is expected to remain buoyant, reflecting sustained occupier confidence and widespread leasing activity.

Hyderabad is poised to witness more than 10 msf of new office supply in 2024, reflecting continued developer confidence in the market Of the estimated ~29 msf of total supply expected during 2025-26, Gachibowli is expected to be the main contributor, accounting for an approximately 84% share.

Owing to robust demand primarily from the IT-BPM, BFSI, and flexible workspace segments, the projected net absorption for 2024 is approximately 7.0 msf.

Rental growth of ~4% is anticipated by the end of 2024.

During 2025 and 2026, rental growth is likely to remain within 2%–3%.

Gachibowli’s robust supply pipeline and competitive rentals positions it as a key beneficiary of strong future demand.

Net absorption for 2025 and 2026 is expected to be within the range of 8.0–8.5 msf.

Rentals are anticipated to rise to INR950 per sq ft per yeatr by the end of 2025, up from INR898 per sq ft per year at the close of 2024.

Vacancy rates are anticipated to rise until 2027 due to increased supply volume.

Within the southern states, Hyderabad’s competitive rentals

enhances its appeal as an attractive destination for occupiers.

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025