Hyderabad: The city has witnessed a remarkable surge in office space transactions during the first quarter of 2025, with 4 million square feet of office space absorbed—the city’s highest quarterly transaction volume in the past five years.
This impressive performance positioned Hyderabad as the second-largest market for office transactions in India during the quarter, trailing Bengaluru, which recorded a staggering 12.7 million square feet of office space absorption, according to Knight Frank India’s latest India Real Estate: Office and Residential Report (Jan-Mar 2025).
Hyderabad sees 10.13 pc increase in office space in 2024: Report
Office transactions rose by 31 percent compared to Q1 2024
The report highlighted Hyderabad’s significant year-on-year growth, with office transactions rising by 31 percent compared to Q1 2024, when the city recorded 3 million square feet of transactions.
Bengaluru, in comparison, had registered 3.5 million square feet of transactions during Q1 2024. Other cities also set new records this quarter, with Pune and Mumbai clocking 3.7 million square feet and 3.5 million square feet of office transactions, respectively.
In addition to the rise in transactions, Hyderabad’s average transacted rents increased by 9 percent over the same period last year, reaching Rs 72 per square foot per month.
Third-party IT services driving Hyderabad’s commercial market
The city’s commercial market was primarily driven by robust leasing activity from third-party IT services and global capability centres (GCCs).
Third-party IT firms accounted for 1.9 million square feet—or approximately 49 percent—of total transactions during the quarter, closely followed by GCCs at 1.6 million square feet (41 percent).
Flex space operators contributed significantly less, with just 260,000 square feet absorbed, representing 6 percent of total uptake.
