Hyderabad office leasing records Up by 50% YoY: Knight Frank India

Hyderabad, 2026: Knight Frank India, the leading international property consultancy, in its latest assessment of the Indian office market, reported that Hyderabad recorded office transactions of 13.1 mn sq ft during January to September 2026 (9M CY2026), a 50% year-on-year (YoY) increase from 8.8 mn sq ft 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 mn sq ft recorded in 2019.

Hyderabad accounted for 20% of office leasing across India's eight major markets, up from 13% a year earlier. volume has already passed its full-year 2025 total.The city recorded 5.9 mn sq ft 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% YoY and accounted for 30% 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% in Q3 2026 from 13.3% a year earlier, indicating strong absorption of available space.Global capability centres (GCCs) leased 6.2 mn sq ft in Hyderabad during 9M CY2026, up by 70% YoY, and accounted share of 47% of the overall city's transactions.

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% YoY, occupiers planning to expand should account for the availability and cost of quality office space in their decisions.”