Hyderabad MarketBeat Reports

Hyderabad’s office market recorded gross leasing volume of 2.1 MSF in Q2-26, taking H1 2026 leasing to 5.2 MSF, up 25% y-o-y. Demand remained diversified, led by IT-BPM, BFSI and Healthcare & Pharma sectors, while GCCs accounted for 37% of quarterly leasing. Gachibowli emerged as the most active office corridor, followed by Madhapur. With no new Grade A office supply added, citywide vacancy declined further to 19.1%, while Grade A+ vacancy remained exceptionally tight. Office rentals continued to appreciate, reinforcing Hyderabad’s position as a leading commercial real estate and GCC destination.

Hyderabad recorded retail leasing of 0.37 MSF in Q2 2026, down 13% q-o-q and 34% y-o-y, primarily due to a high base effect. Main streets led with a 56% share, while mall leasing strengthened further, supported by retailer expansion across organized retail assets. The suburban submarket led demand, driven by Kukatpally and Sainikpuri, followed by the core submarket led by Jubilee Hills, Karkhana and Secunderabad. Fashion remained the leading demand driver, followed by department stores and F&B.

Hyderabad recorded 9,040 residential launches in Q2 2026, reflecting stable quarterly activity despite new launches recording a ~13% decline in supply y-o-y. The western corridor led with a dominant 72.5% share in the new launches, driven by strong supply in Kollur, while Bachupally in the North also saw healthy traction in the new launches accounting for 20% share. Suburban locations accounted for nearly 90% of launches, highlighting continued expansion toward peripheral markets. The mid-segment dominated supply, supported by steady demand in western and northern corridors, while premium housing remained concentrated in suburban precincts in the west. Capital values moderated slightly due to the concentration of supply in the suburban markets, while rentals rose steadily, led by key micro-markets such as Narsingi-Kokapet and Madhapur-Gachibowli.

Hyderabad recorded 1.71 MSF of warehousing leasing in H2 2025, supported by strong large-format demand, taking annual absorption to a robust 4.19 MSF. E&M (34%), 3PL (32%), and FMCG (10%) led H2 activity, with the Northern corridor (46%) and Southern corridor (27%) dominating leasing. Industrial demand strengthened to 0.26 MSF, driven by expansions in Shamshabad and Patancheru. Rentals and land values firmed up annually, supported by sustained occupier confidence and healthy Grade A availability.

Cushman & Wakefield India Capital MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.