Hyderabad MarketBeat Reports

Hyderabad’s office market recorded strong leasing momentum in Q1-2026, with gross leasing volumes reaching ~3.15 MSF and net absorption of 2.21 MSF. Large format deals dominated activity, reflecting continued confidence from multinational corporations. Madhapur emerged as the most active submarket, supported by robust take up in Grade A and Grade A+ office spaces. IT-BPM led demand, followed by flexible workspaces and BFSI firms, while GCCs remained an important driver of office leasing. With no new supply added, city-wide vacancy narrowed sharply to 20.22%, and average office rentals continued to rise, reinforcing Hyderabad’s position as a preferred commercial real estate and GCC hub.

Hyderabad recorded retail leasing of ~0.43 MSF in Q1-2026, remaining largely stable q-o-q. Main streets dominated with a 64% share, led by strong traction in core locations such as Gachibowli and Madhapur, followed by peripheral and suburban markets. Fashion remained the leading demand driver with a 30% share, supported by steady F&B, entertainment and department store activity. With no new supply added during the quarter, overall vacancy eased to 5.66%. High street rentals registered a marginal uptick, supported by sustained occupier interest and improving connectivity across emerging retail catchments.

Hyderabad saw 9,126 residential launches in Q1 2026, led by the West zone (65%), notably the Financial District and Nanakramguda, and North zone (19%) with Balanagar as a key contributor. Supply was well-balanced across core (36%), peripheral (36%), and suburban (29%) markets. The mid-segment accounted for 42% of launches, with high-end and luxury at 28% and 10% respectively, with premium offerings concentrated in West Hyderabad’s prime corridors. Capital values rose 3% y-o-y and rentals grew 2%, while Narsingi-Kokapet outperformed with 12% capital and 10% rental growth y-o-y. With strong market fundamentals and a diverse supply mix, Hyderabad stands out as a key destination for real estate investment and sustained growth.

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.