Hyderabad: Hyderabad's commercial real estate market is set to maintain strong leasing momentum through 2025, supported by the availability of high-quality Grade A office spaces and robust urban infrastructure, according to Knight Frank India.
Mr. Joseph Thilak, National Director of Occupier Strategy and Solutions for Hyderabad and Chennai at Knight Frank India, highlighted that the city's office leasing activity is expected to close 2024 with one of the highest absorption rates since the pandemic. Global Capability Centres (GCCs) have remained key drivers, particularly leasing large office spaces. Healthcare and Pharma sectors, followed by BFSI, have emerged as the dominant occupiers for GCC-oriented office spaces in the city. Other segments, including India-facing businesses, flex space operators, and third-party IT services, also continue to be active in the market.
Large office leases (over 1 lakh sq ft) account for more than 60% of the city's total leasing volumes. Thilak pointed to the Financial District's strong pipeline of projects for the next two years, while HITEC City remains the primary commercial hub of Hyderabad.
Looking ahead, the city's commercial real estate market is expected to see an upward trend in rental values in the medium to long term, driven by sustained leasing activity. The availability of Grade A office spaces, coupled with advanced infrastructure and stable governance, will continue to fuel growth in the office leasing sector throughout 2025.
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