Hyderabad MarketBeat Reports

Hyderabad recorded its strongest office performance to date, with gross leasing volumes (GLV) touching 5.42 MSF in Q4 25, supporting a record annual GLV of 12.44 MSF. Net absorption reached 3.91 MSF in Q4 and 9.11 MSF for the year. IT BPM led Q4 demand at 44%, followed by BFSI (35%) and flex operators (12%). GCCs continued to anchor activity with 34% of annual leasing. Q4 supply additions total led 5.51 MSF, primarily in Gachibowli, helping citywide vacancy ease to 22.06%. Rentals strengthened, rising 3% q o q and 12% y o y.

Hyderabad recorded retail leasing of ~0.43 MSF in Q4-25, up by 14% q-o-q, taking annual volumes to ~1.95 MSF. Main streets dominated with 85% share, while malls improved to 15%, reflecting initial traction in new supply. Suburban corridors led with 46% share, followed by peripheral (29%) and core markets (25%). Fashion drove leasing with 32% share, followed by F&B at 20%. Grade A mall vacancy rose to 6.1% due to Lakeshore Mall’s addition, now Hyderabad’s largest, highlighting supply-led vacancy amid strong demand prospects. High street rentals remained stable, supported by steady occupier interest, reinforcing healthy retail fundamentals.

Hyderabad recorded 9,918 residential unit launches in Q4-25, maintaining steady momentum in line with recent trends. The West zone led with 76% share, driven by strong activity in Tellapur and Kokapet, while peripheral locations contributed 50% of quarterly launches. Mid-segment dominated with 58% share, followed by high-end housing at 37%, reflecting robust demand across price brackets. For the full year, launches reached 41,061 units, concentrated in western corridors and supported by emerging southern and northern markets. Capital values appreciated 4% y-o-y, led by prime locations such as Banjara Hills, Jubilee Hills, and Kokapet, while rentals grew 3% annually, underscoring healthy market fundamentals.

Hyderabad’s warehousing market saw 2.6 MSF of leasing volume in H1-25, marking an 80% increase y-o-y and a more than 2X growth compared to H2-24. The Northern submarket led leasing activity, accounting for 60% share. Industrial leasing stood at 0.10 MSF with the Southern submarket attracting most of the demand, comprising 78% share.

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.